SB 205-TELECOMMUNICATIONS REGULATION/EXEMPTIONS  1:35:30 PM CHAIR COSTELLO announced the consideration of SB 205. She noted that public testimony had opened and closed. She stated the intention to move the bill after Ms. O'Connor addresses the issues that were brought up yesterday. 1:36:22 PM CHRISTINE O'CONNER, Executive Director, Alaska Telecom Association (ATA), Anchorage, Alaska, said she appreciates the opportunity to answer the questions that came up yesterday. She noted that audio difficulties yesterday prevented the members from hearing her responses. She discussed the three broad questions that were raised yesterday. The first was what happens if the carrier of last resort decides not to serve an area. She cited a current example that demonstrates the thorough public interest process that exists today and will remain in place should the bill pass. That carrier followed the federal process and notified the FCC about what is happening in that area. Under the state process, the RCA has sent a letter to the FCC citing the authority of public convenience and necessity to require a carrier to serve a certain area. That authority may also be cited to discontinue service. She said that is the certificate authority ATA has talked about during the last several hearings. The RCA has a strong public interest authority today and will maintain it, regardless of the outcome of SB 205. The second issue that was raised related to the RCA's statutory authority to arbitrate disputes between carriers about how they connect their networks and the terms and rates of those agreements. SB 205 does not change that statute. MS. O'CONNER said she appreciates Mr. Parish [with the RCA] noting that the budget changes proposed in the CS regarding the regulatory cost charge add fairness back into the system. The third question related to reporting. She said the bill proposes a simple change to ensure that the detail in the current RCA annual reports will continue. She assured members that this change is not intended to add a legal billing system to the RCA. MS. O'CONNOR said she had not been able to meet with Commissioner McAlpine, [chair of the RCA] to discuss the bill due to his busy schedule. However, SB 205 was drafted based on public statements by RCA commissioners over the past two years that it was a waste of resources for the RCA to review a lot of the currently required filings and reports. The bill deliberately eliminates many of those filings and reports in direct response to the RCA concerns. She noted that the Alaska Universal Service Fund was not included in the bill because it was already being evaluated and updated by the RCA. ATA was participating in the round of comments due on the AUSF today. She summarized that SB 205 eliminates wasted effort by the industry and the RCA and preserves the RCA's existing public oversight role. 1:41:11 PM CHAIR COSTELLO thanked Ms. O'Connor for coming to Juneau to respond in person to some of the concerns raised yesterday. 1:41:29 PM SENATOR MICCICHE said his only concern was rate changes and those were no longer part of the bill. He opined that that issue will entail a longer conversation than there is time for this year. SENATOR MEYER asked for confirmation that ATA represents all the telephone companies in the state. MS. O'CONNOR replied ATA represents all the phone companies except the small Circle Telephone Company. SENATOR MEYER noted that the RCA testified that the CS was an improvement, but they did not state support for the bill. He asked what could be done to gain their support. MS. O'CONNOR said she didn't know what other changes the RCA would find beneficial since the bill was drafted in direct response to their concerns stated on the public record. This legislation leaves the RCA ample authority to investigate companies to protect the public interest, it has multiple layers of annual reporting on services, and it says what the use of federal and state universal service funds are. She noted that the RCA has stated it needs to eliminate a lot of their regulations that have become obsolete. 1:43:47 PM SENATOR MEYER moved to report the CS for SB 205, version U, from committee with individual recommendations and attached fiscal note(s). 1:44:03 PM CHAIR COSTELLO found no objection and CSSB 205(L&C) moved from the Senate Labor and Commerce Standing Committee.