SENATE BILL NO. 52 "An Act relating to competition in the provision of local exchange telephone service; and providing for an effective date." CS FOR SENATE BILL NO. 52(L&C) "An Act relating to competition in the provision of local exchange telephone service; and providing for an effective date." Senator Green MOVED Amendment #1. There was objection. Senator Green explained her amendment. She said there was concern regarding the quantity and quality of service. Senator P. Kelly indicated that his proposed amendment may address some of Senator Green's concerns. They are not deregulating. Senator Adams asked to hear the difference between the two amendments. Co-chair Torgerson said page two, line twenty- six was the only difference. Senator Adams said it was important that the difference be clarified. Senator P. Kelly referred the committee to page two, line nine. Senator Green and Senator Kelly had a brief discussion. "One cannot come in and cherry-pick under this bill," said Senator P. Kelly. "The entire area must be provided service." Senator Leman asked if an amendment to amendment #1 could be made on line 10 of deleting "shall" and inserting "may"? Senator Green advised the committee of this suggested change by Senator Leman. Senator Phillips briefly commented. He said that areas were different around the State. Senator Adams commented re the suggested language change by Senator Leman. Senator Leman clarified his suggested change. Senator Green requested a brief at ease. Co-chair Torgerson granted the request at approximately 10:45 a.m. Co-chair Torgerson reconvened the meeting. Senator Kelly retained his objection. Senator Green MOVED amendment to amendment #1 which would delete "shall" and insert "may" on line ten. WITHOUT OBJECTION it was ADOPTED. Senator Kelly advised however, that he still maintained his objection to amendment #1. By a roll call vote of 4 yeas (Torgerson, Adams, Green, Phillips) and 5 nays (Parnell, Donley, Leman, Wilken, P. Kelly) amendment #1 FAILED. Senator Kelly MOVED amendment #2. Co-chair Torgerson OJBECTED. Senator Kelly explained his amendment. Senator Adams asked for an explanation of line eight, page one of amendment #2. Senator Kelly responded. Senator Wilken questioned the two year date and why people would be more comfortable with this rather than four or six years. Senator Kelly commented. In actuality, the level of comfort will be for the utilities and perhaps not much of a comfort for the public. By a roll call vote of 6 yeas (Torgerson, Parnell, Donley, Leman, Wilken, P. Kelly) and 3 nays (Adams, Green, Phillips) amendment #2 was ADOPTED. (Tape #88, Side B was switched to Tape #89, Side A.) Senator P. Kelly commented again briefly on the bill. Senator Adams asked if APUC was on teleconference as there were some questions he wanted to ask. Co-chair Torgerson said they were not. Senator Adams said he opposed the bill but needed the answers as to what the position of APUC was regarding this bill. Specifically, he wanted to know what APUC felt about the telephone rates, and what was the effect of the bill regardless of where one lived in Alaska. Senator P. Kelly said APUC has been neutral on this bill. It is believed the competition will provide better service and lower rates. Senator Adams said it should not matter where one lived. The same rates and services should be provided for all. Co-chair Torgerson concurred. Senator Kelly MOVED CSSB 52(FIN). Senator Adams objected. Senator Green also voiced her frustrations and reliance on APUC. By a roll call vote of 6 yeas (Torgerson, Parnell, Donley, Leman, Wilken, P. Kelly) and 3 nays (Adams, Green, Phillips) CSSB 52(FIN) was REPORTED OUT with individual recommendations. New fiscal notes will be forthcoming from the Department of Commerce. Co-chair Torgerson reviewed the agenda for tomorrow regarding the Operating Budget. Senator Adams asked for the schedule for amendments. Senator Parnell said he hoped to have all amendments in his office by 5:00 p.m. on Friday. ADJOURNMENT Co-chair Torgerson adjourned the meeting at approximately 11:05 A.M. SFC-99 (1) 04/13/99