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October 13 & 14, 2006
Best Value Inn
Senator Cut Meier, Co-Chairman
Representative Pete Illoway, Co-Chairman
Senator John Hanes
Senator Wayne Johnson
Senator Jayne Mockler
Senator Charlie Scott
Representative Ross Diercks
Representative Keith Gingery
Representative Marty Martin
Representative Del McOmie
Representative Erin Mercer
Representative Monte Olsen
Representative Bruce Barnard
Representative David Miller
Lynda Cook, Staff Attorney
Senator Cale Case
Please refer to Appendix 1 to review the
Committee Sign-in Sheet
for a list of other individuals who attended the meeting.
The Joint
Corporations, Elections and Political Subdivisions Interim Committee met in
The committee
adopted three bills requested by the department of insurance concerning sunset
of rules, department accreditation and risk based capital for health insurance
organizations. The commission also
adopted bills regulating limited liability companies, limited liability limited
partnerships, reinstatement of registered limited liability partnerships and
limited partnerships. The
committee adopted a bill providing clarification of certain ballot requirements
and a bill outlawing bearer shares for corporations.
The committee adopted
a bill providing for the purchase of the Riverton fire training academy
facility and a grant program to upgrade fire training facilities throughout the
state. The committee adopted a bill
increasing the bonding capacity of fire protection districts and another bill
allowing for fire protection district boundary changes. Finally, the committee adopted a bill
regulating animal euthanasia technicians and a bill providing for citation
authority for certain municipal officers. The Committee will meet again
on December 18, 2006 in
Co-Chairman Curt
Meier called the meeting to order at 8:05 am.
The following sections summarize the Committee proceedings by
topic. Please see the Agenda for
details. (Appendix 2).
The committee
approved the minutes of the July, 2006 meeting.
The committee
discussed the bill: 07 LSO 0064.W2 – Telecommunications. (Appendix 3)
The bill was moved
and seconded
Steve Furtney,
Chairman of the Public Service Commission and Bryce Freeman, Office of Consumer
Advocate explained the bill. Mr. Furtney
explained the history of regulation since 1995.
He argued that the statutes are fine as they are currently written. If any change should occur it should be
limited to more guidance in the definitions of relevant market and competition.
Senator Case
commented on the bill and the process by which the opponent of the bill, the
PSC, is presenting the bill.
Mr. Furtney
discussed three areas where the bill raised concern at the PSC. The bill should clarify the definitions of
relevant market, effective competition and comparable prices.
Chairman Meier suggested that Section 202 should be clear that it does not
apply to new entrants into the market.
Don Jackson
explained that the WTA's proposed amendment was carefully crafted to cause
deregulation of an incumbent only and without the process of filing an
application. (Appendix 4). Liz Zerga explained that the current statute
requires the new competitors to make application. Mike Korber argued that there are many
competitive carriers that did not have to get a 202 determination because they
are not facilities based. It was agreed
that there is no reason to have new competitors go through a pro forma hoop of
being declared competitive. It should
not apply to non-affiliated new entrants.
Mr. Furtney
discussed Section 402. The commission
was concerned that the bill would eliminate the cost standard. They are concerned that repealing this would
have implications in cross subsidies.
They would no longer have a standard to determine if cross subsidies
exist.
They also had
concerns regarding the language in 405 – Complaints against prices. Corey Jackson, Tricounty Telephone provided
a memo discussing the federal pre-emption issue (Appendix 5). He explained the federal law governing
regulation of wholesale services. The
federal government set up a regime by which wholesale prices are set. States cannot regulate in a manner that is
inconsistent with that regime. He argued
that setting up a complaint process that allows the commission to set aside a
rate based on a standard that is inconsistent with the federal regime would be preempted. Liz Zerga disagreed arguing that states do
have the authority to regulate price squeezes and anticompetitive
behavior. She provided findings from a
FCC order stating that they have the jurisdiction to regulate. (Appendix 6).
Mr. Jackson agreed that they do have the authority to regulate the rates
but they have to do so within the standards set by the FCC. His concern is that the methodology in the
complaint process in the statute would be inconsistent with those federal
standards. Chris Robish stated that the
405 amendment he proposed would solve the problem by giving the Commission
authority to hear complaints about wholesale but using only the federal
standards. (Appendix 7).
With respect to the
removal of TSLRIC having an affect on determining cross subsidies, Senator Case
suggested that they may need a system whereby if there is a complaint against
prices and the charge is an unreasonably high one, then they would have to file
a TSLRIC cost study. It was argued that
the WTA amendment to page 5 solves the problem of pre-emption and regulation of
wholesale prices. Also, they could just
repeal the prohibition on cross subsidies.
There was discussion
about the USF phase out provisions of the bill.
The following
amendments were adopted:
Page 7-after line
17 Insert 202(c) after “switched access”
insert “, new entrant to a relevant market that are not an affiliated
telecommunications company with the incumbent”
and reinsert 37-15-103(a)(i).
Passed.
Page 5-line 11 and
12 Delete new language
reinsert stricken language.
Repeal 35-17-403 entirely.
Page 15-line 6 Delete “costs” insert “prices”.
Page 17-line 19
through Page 18-line 14 Delete
entirely.
Page 20-12 through
Page 23-line 17 Delete
entirely.
The committee
adopted portions of the amendments proposed by WTA. See Appendix 8.
The committee asked
the LSO to bring the proposed Bresnan amendments as a separate bill for
consideration at their next meeting.
(Appendix 9).
The bill, after
amendments are entered, is to be worked again at a meeting on December 18, 2006
in
The bill repeals
sunseting rulemaking authority for certain authority. Linda Johnson addressed the need for the
bill.
The committee passed
the bill unanimously. (Appendix 10).
The bill provides a scientific
approach to determining the minimum capitalization a company should maintain
based on specific risk factors. The law
would require certain regulatory actions if capitalization levels fall below
prescribed levels. The insurance code
already has risk based capital requirements for life and health insurers and
property and casualty insurers. If
enacted, the law would make health insurers subject to the same requirements.
Dan Lex, AIG,
testified in support of the bill.
Amendments were
proposed by the insurance department and those amendments passed. (Appendix 11).
The bill passed unanimously.
(Appendix 12).
The bill adopts the
property and casualty actuarial opinion model law and other minor changes to
support national accreditation of the department.
Amendments were
proposed by the insurance department and those amendments passed. (Appendix 13).
The bill passed unanimously.
(Appendix 14).
The committee
adjourned for the day at 9:55 pm.
The committee
reconvened at 8:00 am., October 14, 2006.
The bill provides
for grants to local governments for improvement of fire training
facilities. Lanny Applegate, Phil Oakes
and Mike Anderson presented the bill to the committee. Mr. Applegate explained that the bill needs
to specify that the state fire marshal is authorized to acquire the fire
training facility in Riverton and that the positions are for running the
academy. He provided letters of support
from all the fire associations throughout the state. (Appendix 15)
The following
amendments were adopted:
Page 2-before line
1 “(a) The state fire marshal is
authorized to purchase on behalf of the state, for a price not to exceed $1,
the state fire training facility in Riverton.
The state fire marshal shall be responsible for all transaction costs
involved in the purchase. The state fire
marshal is authorized to operate the facility thereafter.” Renumber as necessary.
Page 2-line 6 after “expenses” insert “related to the
grant program”.
Page 5-line 6 Delete the line through “created” insert
“fire training academy facility and programs authorized”.
The bill passed
unanimously. (Appendix 16).
Chairman Meier
stated that a bill raising taxes should be processed through the revenue
committee rather than the corporations committee. The committee will work it then hand it off
to the other committee for consideration for sponsorship.
Marlene Atchison,
fire chief LCFD #2, presented the bill. Russ Wenke, Cody Fire District also addressed
the bill. He clarified that this bill
requires a vote of the people before the additional two mills may be assessed. Senator Scott asked for more information
about the costs associated with running fire protections districts, including
information about the dollars available through other sources. Senator Scott wanted to know how this could
reflect on mineral severance taxes throughout the state.
There was discussion
about the effect of an additional mill levy on cities, towns and counties. Staff provided a memo to the committee
explaining that if a fire protection district encompasses a city or town, the
additional mill levy for the district would count against the city's limitation
and could prevent a city or town from collecting its full 8 mills or reaching its
full bonded indebtedness. (Appendix 17).
The bill failed 4-7
(Hanes, Scott, Gingery, Martin, Mercer, McOmie, Olsen opposed). (Appendix 18).
Russ Wenke explained
the bill. The bill increases the bonded capacity of fire
protection district to 4%. LSO staff
referred again to the memo explaining that this increase may affect the ability
of a city or town to maximize its bonded indebtedness.
The bill passed 8-3 (Hanes,
Gingery, Mercer opposed). (Appendix 19).
Russ Wenke explained
the bill. The bill attempts to allow a
portion of a district to opt out and create a separate district.
Senator Scott
suggested putting in a two year sunset on the bill in order to allow the
Frannie/Deaver situation to occur but to give the legislature time to find a
better way to accomplish this with oversight by the counties.
The following amendments
were adopted:
Page 3-line 4 Delete “at least twice”
Page 3-after line 15
insert “(d) If the district is within
two or more counties, the county commissioners are the county commissioners of
the county where most of the property exists.
The county commissioners of each county shall send the notices in their
own county but the rest of the duties would be the majority county”. Staff was directed to manipulate the language to
accomplish this intent.
Section 3. Repeal new statutes and new section effective
June 30, 2009 and change effective date to immediately.
The committee
decided to ask management council to approve this as an interim topic for next
session.
The bill passed
unanimously. (Appendix 21).
Peggy Nighswonger
presented the bill which provides for ballot formats and other issues to deal with
electronic voting. Debbie Lathrop,
Laramie county clerk, explained the need for these amendments.
The following
amendments were approved:
Page 3-line 4 Strike “On the same line” insert “Adjacent
to the title of the office”.
Page 3-line 23 Strike “after” insert “adjacent
to”.
Page 2-line 1 Delete new language; insert “If a clerk is
unable to obtain ballots on time, the secretary of state shall provide by rule
and regulation for the clerk to obtain and use substitute ballots.”.
Peggy Nighswonger,
secretary of state’s office explained to the committee a list of items that
county clerks would like to see enacted.
(Appendix 22). The committee
directed LSO to draft a bill that handles number 1 through 3 or to incorporate
them into this bill, if possible, and they would reconsider it.
The bill passed
unanimously. (Appendix 23).
Jeanne Sawyer
explained the bill. It provides for
reinstatement of limited partnerships and registered limited liability
partnerships within two years of administrative dissolution.
The bill passed
unanimously. (Appendix 24).
The bill provides
for LLLPs. It provides for general partners to have similar
liability with limited partners.
The bill passed
unanimously. (Appendix 25).
07 LSO 0056.W2 – Limited
liability companies.
Carol Gonella
explained the bill. The bill has provisions
cleaning up the statutes but also has provisions allowing series LLCs. The committee discussed the new provisions
creating series LLCs. The committee
exressed concern over the potential for abuse with series LLCs and decided to
delete those provisions from the bill.
The following amendments
were approved:
Page 2-line 15
through Page 11-line 3 Delete entirely.
Page 16-line 15
through Page 17-line 3 Delete
entirely.
The bill passed (Gingery opposed). (Appendix 26)
Tom Cowen, Secretary
of State's office, presented the bill.
The bill prohibits the use of bearer bonds.
The bill passed
unanimously. (Appendix 27).
George Parks, WAM,
presented the bill. WAM would like to
broaden the bill to include all code violations.
Amendments: As attached (Appendix 28).
The bill passed
unanimously.
The bill allows
certified technicians to use tranquilizers.
The bill passed
unanimously. (Appendix 29).
There being no
further business, Co-Chairman Pete Illoway adjourned the meeting at 3:00 pm.
Respectfully
submitted,
Representative Pete
Illoway, Co-Chairman Senator
Curt Meier, Co-Chairman