Committee Meeting Information

December 18, 2006

Capital Building, Room 302

Cheyenne, Wyoming

 

Committee Members Present

Senator Cut Meier, Co-Chairman

Representative Pete Illoway, Co-Chairman

Senator John Hanes

Senator Jayne Mockler

Senator Charlie Scott

Representative Keith Gingery

Representative Marty Martin

Representative Del McOmie

Representative Erin Mercer

 

committee Members Absent

Senator Wayne Johnson

Representative Bruce Barnard

Representative Ross Diercks

Representative David Miller

Representative Monte Olsen

 

Legislative Service Office Staff

Lynda Cook, Staff Attorney

 

Others Present at Meeting

Senator Cale Case

Senator Stan Cooper

Representative Kermit Brown

Representative Lorraine Quarberg

Representative Tom Walsh

Representative Dan Zwonitzer

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.

 

Joint Corporations Interim Committee Meeting Summary (December 18, 2006)

 

The Joint Corporations, Elections and Political Subdivisions Interim Committee met in Cheyenne to considerer proposed legislation related to telecommunications and reconsideration of specific bills already approved by the committee.  The Committee heard testimony from a number of parties related to the proposed legislation. 

 

The committee reconsidered and amended four bills concerning election code revisions, business entities and municipal officer authority to issue citations.

 

The committee adopted a bill providing for exclusive telecommunications contracts for local governments and a rewrite of the telecommunications laws. 

 

Call To Order

Co-Chairman Curt Meier called the meeting to order at 8:30 am.  The following sections summarize the Committee proceedings by topic.   Please see the Agenda for details. (Appendix 2).

 

approval of minutes

The committee approved the minutes of the October, 2006 meeting. 

 

Reconsideration of bills.

 

07 LSO 0111.W2 – Election code revisions.

 

Peggy Nighswonger, Secretary of State's Office, testified that the bill was amended to address additional election code revisions.

 

The bill passed as amended.  (Appendix 3).

 

07 LSO 0056.W3 – Limited liability companies .

 

Jeannie Sawyer, Secretary of State's Office, testified regarding the bill.   The Secretary of State’s office does not support the bill.  They would like a longer period of time to come up with better language that would make the statutes stronger.  They would like to see names and addresses included in the articles of organization.  They think the bill needs work to strike a balance between helping businesses and preventing fraud.

 

The committee discussed the propriety of killing the bill at a meeting where the constituent sponsoring the bill was only aware that the bill was being reconsidered for an amendment to strengthen it.

 

The bill passed without amendment (Senator Mockler and Representative Gingery opposed).  (Appendix 4).

 

 

07 LSO 0052.C1 – Limited liability limited partnerships.

 

LSO staff explained the necessity for an amendment to close a loophole.  Liability of a partnership under contract arises at the time of the breach and the amendment would remove the ability of an LLP to enter into a contract then change to an LLLP to avoid liability.

 

The bill passed unanimously as amended.  (Appendix 5).

 

07 LSO 0112.C1 – Municipal officers authority.

 

The bill was reconsidered to exempt the officers from additional statutes, including governmental immunity statutes, title 6 and title 7.

 

George Parks, WAM, testified in support of the bill.   He supported the amendment.

 

The bill passed unanimously as amended.  (Appendix 6). 

 

Election update. 

 

Previously, the chairmen asked the Secretary of State  to get letters from county clerks regarding issues arising in the election.  (Appendix 7).

 

Julie Frees, Fremont County Clerk, testified that disabled people were provided better opportunities to vote this year and that optical scan machines worked great.  She also supported the idea of increasing the number of students that can help in elections.  She expressed concern that HAVA requires expedited returns and that can be difficult for counties that have only very few employees. 

 

There was discussion about the process of recounts.  There was also discussion about the difference between human error and machinery error.

 

Sheri Daigle, Teton County Clerk, testified regarding recounts.  In their county they had a problem with tabulation.  Once the machines were programmed correctly the machines worked perfectly.

 

Telecommunications

 

07 LSO 0270.W1 – Telecommunications-exclusive contracts.

 

Walter Eggers, Bresnan communications, testified in support of the bill.  Bresnan proposed several amendments to the bill.   One provision provides a grandfather clause for contracts previously entered.  Another requires that the exceptions must go to a vote of the people.

 

Senator Scott proposed rewriting the proposed amendment of section (f) as follows:

 

“(f)  A city may enter into an exclusive contract prohibited under this act after a vote of the people at a general or special election as provided in the Wyoming election code.”

 

Senator Scott argued that they should vote for this bill because it is advancing the agenda of general deregulation because it removes a local government's ability to avoid competition.  Mr. Eggers said it supports sustainable competition.

 

Jerry Lambert, Bresnan Communications, testified in support of the bill.  He sees it as an economic development support bill.  Bresnan has spent  a lot of money to bring infrastructure into communities without the expectation that the community could then cut that investment out of the picture.

 

Shawn Begai, Brensan also testified in support of the bill, explaining times in other states where they passed similar bills in response to bad projects.

 

George Parks, WAM, testified in opposition to the bill.  He provided a comparison of broadband access in various communities.  (Appendix 8).  He explained the effect of the bill on municipalities.  Rural towns do not have the kind of competition necessary to attract investment in infrastructure.  They need this tool to promote that innovation.  He also argued that the bill is premature because they want to see how the current experiments are going to play out. 

 

Ernest Bray, Metronet testified that current federal law prohibits exclusive franchise agreements.  What is at issue here is the city financing an infrastructure through a partnership agreement to guarantee a bond to get the infrastructure there.  He asserted that new competition is capable of coming in.  The exclusive arrangement only relates to newly constructed facilities.  He provided a synopsis of the Powell program.  (Appendix 9).

 

Jerry Lambert testified that the intent of the bill is to prohibit exclusive construction contracts.  He also stated that federal law only prohibits exclusive contracts on the video side.  He stated that the current Powell contract relates not only to the construction of facilities but provides that the city will only use that facility.  That stifles competition.

 

Mike Ceballos, Qwest, testified in support of the bill with the amendment to require a vote on those exclusive contracts.

 

The Green River Rock Springs Joint Powers Telecom Board provided written testimony in opposition to the bill.  (Appendix 10).

 

Harry Ivey, PSC, testified that there are problems with the bill.  The commission would be required to enforce the law.  They don’t think it should be in the public utility statutes but instead should be in the municipality statutes.  Those statutes already provide that the governing body of cities of towns may grant franchises without exclusive rights whatsoever.  He believes that makes this statute unnecessary but there is no provision for who should enforce it. 

 

Brett Glass, lariat.net, testified cautiously in support of the bill.  He thinks it needs to be fleshed out to apply clearly to use of infrastructure and not the building of infrastructure.  He did not support a grandfather clause.  He thinks it should apply to all state agencies. 

 

Jim Rogers, GRRS Joint Powers board, testified that the market should determine these issues. He argued that there is nothing wrong with exclusive arrangements.  It all depends on the purpose.  This legislation is throwing out the baby with the bathwater.  Exclusive arrangements are okay as long as there is open access to the infrastructure. 

 

The committee worked the bill.

 

The committee passed the bill unanimously as amended.  (Appendix 11).

 

07 LSO 0064.W3 – Telecommunications.

 

Liz Zerga, Alltel, Dale Cottam, AARP and Chris Robish, Contact communications, testified regarding the coalition amendments (Appendix 12).  They are seeking protection for essential service, limitation on access charges and limitations on the use of universal service fund to keep it intact. 

 

Jody Levin, Qwest, Michael Fox, RT communications and Jim Roberts, Embark, testified that they are looking for streamlined regulation that would provide the incumbent providers with a level playing field.  Their major concern is to avoid new regulatory requirements that are suggested in the coalition amendments.  The WTA amendments were focused on policy issues. 

 

Brett Glass, lariat.net, testified in support of the coalition amendments. 

 

Steve Furtney testified on behalf of the PSC.  They provided written comments regarding the coalition and WTA amendments. (Appendix 13).

 

The committee worked the bill.

 

The bill passed as amended.  (Appendix 14).  (Chairman Illoway and Senator Scott opposed).

 

Meeting Adjournment

There being no further business, Co-Chairman Pete Illoway adjourned the meeting at 5:06 pm.

 

Respectfully submitted,

 

 

 

Representative Pete Illoway, Co-Chairman                              Senator Curt Meier, Co-Chairman

 

 

 

 

 

 

 

 

 

Appendix		Appendix Topic		Appendix Description		Appendix Provider
1		Committee Sign-In Sheet		Lists meeting attendees		Legislative Service Office
2		Committee Meeting Agenda		Provides an outline of the topics the Committee planned to address at meeting		Legislative Service Office
3		Elections		07 LSO 0111.C1 – Election code revisions		Legislative Service Office
4		Business Entities		07 LSO 0056.C1 – Limited liability companies		Legislative Service Office
5		Business Entities		07 LSO 0052.C2 – Limited liability limited partnerships		Legislative Service Office
6		Local Governments		07 LSO 0112.C2 – Municipal officers authority		Legislative Service Office
7		Elections		Letters from County Clerks		Secretary of State
8		Telecommunications		Broadband access comparison		George Parks
9		Telecommunications		Northwest Joint Powers Board – Fiber to the premise network infrastructure		Ernest Bray
10		Telecommunications		Written testimony		Green River-Rock Springs Joint Powers Telecom Board
11		Telecommunications		07 LSO 0270.C1 – Telecommunications-exclusive contracts		Legislative Service Office
12		Telecommunications		Coalition proposed amendments to 07 LSO 0064.W3		Liz Zerga
13		Telecommunications		Comments on proposed amendments to 07 LSO 0064.W3		Public Service Commission
14		Telecommunications		07 LSO 0064.C1 – Telecommunications.		Legislative Service Office