Joint Corporations Minutes

Draft Only

Approval Pending

of SUMMARY

P ROCEEDINGS J OINT CORPORATIONS, ELECTIONS & POLITICAL SUBDIVISIONS COMMITTEE

COMM ITTEE M EETING I NFORMATION June 3-4, 2015 The Inn at Lander Lander, Wyoming

COMM ITTEE M EM BERS PRESENT Senator Cale Case, Co-chairman Representative Dan Zwonitzer, Co-chairman Senator Larry Hicks Senator Curt Meier Senator Stephan Pappas Senator Charles Scott Representative Jim Blackburn Representative Roy Edwards Representative Gerald Gay Representative Mark Jennings Representative Dan Kirkbride Representative Tyler Lindholm

COMM ITTEE M EM BERS NOT PRESENT Representative Byrd, Representative Paxton

LEGISLATIVE SERVICE OFFICE STAFF Ian Shaw, Staff Attorney Kelley Shepp, Research Analyst

OTHERS PRESENT AT M EETING Please refer to Appendix 1 to review the committee Sign-in Sheet for a list of other individuals who attended the meeting

The Committee Meeting Summary of Proceedings (meeting minutes) is prepared by the Legislative Service Office (LSO) and is the official record of the proceedings of a legislative committee meeting. This document does not represent a transcript of the meeting; it is a digest of the meeting and provides a record of official actions taken by the Committee. All meeting materials and handouts provided to the Committee by the Legislative Service Office, public officials, lobbyists, and the public are on file at the Legislative Service Office and are part of the official record of the meeting. An index of these materials is provided at the end of this document and these materials are on file at the Legislative Service Office. For more information or to review meeting materials, please contact the Legislative Service Office at (307) 777-7881 or by e-mail at [email protected] . The Summary of Proceedings for each legislative committee meeting can be found on the Wyoming Legislature’s website at www.wyoleg.gov. PAGE 2 OF 12

EXECUTIVE SUMMARY The Committee met for two days in Lander. The Committee heard testimony from the Insurance Department concerning pharmacy benefit managers and the adoption of corporate governance and internal audit model acts. The Committee received updates from the Secretary of State and county clerks and received information concerning election issues, election code revisions, Securities Act revisions, special districts, local government finances, urban renewal and emergency 911 services. The Wyoming Public Service Commission provided an update to the Committee. Many of the materials considered by the Committee were contained in a notebook provided to the Committee by LSO. That notebook is divided into tabs which will be referenced in these minutes. The notebook is included as Appendix 3.

CALL TO ORDER (JUNE 3, 2015 8:30 AM) Co-Chairman Case called the meeting to order at 8:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee's meeting agenda.

APPROVAL OF MINUTES Minutes from the Committee's November 12-14, 2014 meeting were approved.

INSURANCE DEPARTMENT

Insurance Commissioner-Agency Update Commissioner Tom Glause gave an overview of the Department of Insurance's budget and staffing, included in Appendix 3, “Insurance Department.” Denise Burke, Insurance Department, discussed the public service announcement issues outlined at page 2 in Appendix 3, “Insurance Department.”

National Association of Insurance Commissioner’s Accreditation Linda Johnson, Department of Insurance Chief Examiner, discussed National Association of Insurance Commissioners' Accreditation (NAIC) including consumer assistance, examinations, licensing, enforcement, oversight and policy form review. She addressed the points included at pages 4-6 in Appendix 3, “Insurance Department.” Ms. Johnson discussed the Corporate Governance Annual Disclosure Model Act and Model Regulation, included as Attachment #3 and #4 in Appendix 3. The model language need not be adopted until 2020. Senator Scott expressed some concern on the reporting aspect of the model act and asked the Committee to consider sponsoring a resolution asking NAIC to simplify the model regulations so as to place less burden on companies that must report. After further discussion, on a voice vote, the Committee passed a motion to have LSO place the model act into draft legislation. The draft likely should add a new chapter to the Insurance Code. The draft should not contain the severability language contained in the model act, nor should it include the model act's language regarding the law's purpose. The Department of Insurance will advise LSO if there are conforming amendments necessary elsewhere in the Wyoming Insurance Code. At the next meeting, the Department will provide the Committee with a side-by-side comparison of the Department's currently required disclosures and what would be required under the model act.

Co-Chairman Case asked for public comment. Katherine Wilkinson with the Property and Casualty Insurance Providers and Mountain West spoke in support of the model act. Bob Bonnar discussed confidentially and has no objections to the model act. John McBride, Blue Cross Blue Shield, does not object to the model act but may have concerns with the related regulations. They are working with the Insurance Department on this issue and feel that accreditation with NAIC is important. Dan Purdue with WinHealth supports the model act but may have comments on its regulatory burdens.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEB SITE www.wyoleg.gov PAGE 3 OF 12

Ms. Johnson and Commissioner Glause then discussed the Annual Financial Reporting Model Regulation, included as Attachment #6 in Appendix 3, “Insurance Department.” Wyoming already maintains these regulations in Chapter 3 of the Wyoming Insurance Code. Attachment #6 provides suggested amendments to Wyoming's regulations. Co-Chairman Case asked for public comment and there was none. On a voice vote, the Committee voted to have LSO draft a bill making the changes suggested in Attachment #6.

Updated Insurance Laws and Regulations-Parity Between Business Entity Types The Department of Insurance discussed the information contained at page 6 of Appendix 3, "Insurance Department," concerning discrepancies in how companies are regulated depending on the type of business entity the company chooses. Consistent with the statutory recommendations made in the Department's materials, the Department agreed to draft preliminary legislation that the Committee will consider at its next meeting. LSO will assist as requested by the Department. The draft legislation should consist of two separate bills. One bill should include all the Department's suggestions, except those related to pre-need funeral contracts. A separate draft should be drafted to address pre-need funeral contracts. If necessary, multiple bills can be drafted to cover separate issues, but pre-need funeral contracts should be addressed in a separate bill. Mr. Purdue, WinHealth, stated that the suggested statutory amendments will not change WinHealth’s business, but he may have further comment once he reviews the draft legislation.

Pharmacy Benefit Managers and Auditing Procedures Deputy Commissioner Jeff Rude and Denise Burke gave the Committee general information on pharmacy benefit managers (PBM) as outlined at page 7 of Appendix 3, “Insurance Department." Mr. Rude and Representative Kirkbride discussed 2015 LSO 152-Pharmacy benefit manager-regulation, cancelled legislation based on law passed in Oregon, see Appendix 3, "Pharmacy Benefit Managers." The legislation includes provisions both for the regulation of audits that pharmacy benefit managers conduct on pharmacies and for the regulation of maximum allowable cost pricing (MAC). The bill draft may eventually need to include appeal processes and standards. The Committee engaged in an extensive discussion on the role of pharmacy benefit managers and their auditing procedures. There was concern over MAC pricing and a lack of transparency around the creation of MAC price updates. The Committee discussed how often MAC lists are updated and how often they should be updated in order to give proper notice to pharmacies. Although 2015 LSO 152 would have required the Board of Pharmacy to regulate pharmacy benefit managers, all those involved in the discussion agreed that the Department of Insurance is the proper regulatory entity. MAC pricing, auditing procedures and enforcement are the three main concerns that need to be addressed. The Committee considered three letters provided by industry representatives, included in Appendix 4.

The Committee then opened the floor for public comment. Brad Young, Governmental Affairs Director with RX Pharmacies, discussed his letter to the Committee, included in Appendix 4. His company is in favor of pharmacy benefit manager regulation and sees enforceability by the Insurance Commissioner as the major concern. Mr. Young believes a required update of MAC pricing lists every seven days would be beneficial.

Craig Frederick, a retail pharmacist and past president of the Wyoming Pharmacy Association, supports pharmacy benefit manager regulation because pharmacy benefit managers are having a negative impact on small pharmacies. Pharmacies are being undercompensated for the prescriptions they fill for customers to the point that Wyoming's smaller pharmacies may go out of business. He feels that a seven day update of MAC pricing lists would be beneficial to retail owners.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

Tony McRae, a retail pharmacist attending on behalf of the Wyoming Pharmacy Association, discussed the benefits of the audit-related regulations in 2015 LSO 152. Inconsequential mistakes revealed during pharmacy benefit manager audits are often used as a basis for non-payment and the law needs to prevent abusive audits.

Chris Brown with the Wyoming Retail Association is in support of pharmacy benefit manager regulations as indicated in the letter the Association provided to the Committee, included in Appendix 4.

David Roote with Prime Therapeutics and Michelle Mack with Express Scripts discussed opposition to oversight by the Board of Pharmacy. They also discussed the usefulness of the auditing function performed by pharmacy benefit managers. They described the usefulness of pharmacy benefit managers to the insurance companies who hire them. Mr. Roote believes that some of the objectionable and abusive audits mentioned by individual pharmacists are the audits performed by the federal government for Medicare or Medicaid. Mr. Roote explained that pharmacies can pursue an appeal process should they feel they are treated unfairly by a pharmacy benefit manager.

Wendy Curran, Blue Cross Blue Shield, believes that this is a complicated issue. Ms. Curran believes that pharmacy benefit managers serve an important function and help control the costs of prescription medication. She believes it would be beneficial to encourage conversations between all interested parties to discuss areas where 2015 LSO 152 can be improved.

By voice vote, the Committee passed a motion which requires LSO to draft 15 LSO 152 into a bill draft for the Committee's consideration. The bill draft should be revised to require the Department of Insurance to act as the regulating authority. At the Committee's request, the Department of Insurance agreed to act as a coordinator and provide meeting space for all interested parties to confer and come to consensus on recommended changes to 15 LSO 152. The Department will provide the Committee with a fiscal analysis of 15 LSO 152.

Regulation of Indexed Annuities Commissioner Glause discussed the regulation of indexed annuities as contained at page 3 in Appendix 3, “Insurance Department.” Indexed annuities are a type of fixed annuity that earns interest based on changes in a market index (e.g. the DOW Jones Industrial Average, S&P 500 Index, etc.). The Committee discussed the state's disclosure requirements for indexed annuities. A NAIC buyers guide on equity indexed annuities is required to be provided to customers at the time an indexed annuity is sold. The Committee discussed a company's obligation to disclose participation rates. Participation rates establish the percentage of any increase in an index that the annuity purchaser will be credited. Participation rates are often guaranteed for a set period of time, but then become variable. Although a participation rate is often guaranteed to remain within a certain range of percentages, the exact method by which the actual participation rate is set is not disclosed to the annuity purchaser and disclosure is not required by rule or regulation. NAIC maintains model rules applicable to indexed annuities and the Department of Insurance has adopted some, but not all, of the regulations. However, all information required to be disclosed by NAIC's regulations is required to be disclosed in Wyoming. The Department has received very few complaints regarding indexed annuities. The Department agreed to provide the Committee with copies of required disclosure documents before the next meeting.

SECRETARY OF STATE-AGENCY UPDATE Deputy Director Karen Wheeler provided a brief update of work being performed by the Secretary of State’s Office. The Office is working on a number of projects and she will update the Committee on those projects at a later date.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

COUNTY CLERKS-UPDATE The new county clerks introduced themselves to the Committee.

ELECTION ISSUES Primary Elections The Committee discussed the concept of open primary elections in which voters are not required to declare a party affiliation. Carl Allred, Uinta County Republican Party Chairman, discussed how open primaries would decimate Wyoming's political parties. Mr. Allred would like the Committee to consider limiting the ability of voters to change their party affiliation from May 1st until after the primary election. Senator Scott stated that primary elections are designed to whittle down the candidates but that Wyoming has lost this function because of the dominance of the Republican Party and the small number of Democrats on many election ballots. The primary election is often more important than the general election. Senator Rothfuss has prepared legislation on open primaries which will be discussed at the September meeting. Representative Marti Halverson, an executive member of the Wyoming Republican Party, spoke in favor of legislation from Representative Blackburn which would close voter registration two days before the candidate filing period opens. Representative Halverson does not feel an open primary is the best option. The Wyoming Republican Party is against opening the primaries. Aimee Van Cleave, Executive Director of the Wyoming Democratic Party, spoke against limits on a voter's right to change party affiliation. Changing affiliation is sometimes the only way a Wyoming Democrat is able to cast a vote in a primary election. The Committee discussed the ideas of having a runoff option or a ranked choice voting system for primary elections. Peggy Nighswonger with the Secretary of State warned that Wyoming's voting equipment will not support ranked choice voting. The Committee will discuss these options at the next meeting.

On a voice vote, the Committee passed a motion requiring LSO to draft a bill which closes party affiliation changes for the primary election on May 1st, prior to candidates declaring their candidacy. The legislation should apply only to changes in party affiliation and not to the ability to register to vote. After opening the floor to public comment, Jenny Trefferen with the Equality State Policy Center spoke against the legislation believing that adding additional steps to the registration process will discourage participation.

Vacancies and Appointments (Party Affiliation) LSO staff member Kelley Shepp discussed her research memorandum, 15FS018- Board and Commission Membership Requirements, included in Appendix 3, “Boards/Commissions.” The Committee discussed the difficulty in finding qualified members for Wyoming's numerous boards and commissions where the members must satisfy specific qualification standards (e.g. party affiliation, geographical requirements, etc.). Mr. Carl Allred asked the Committee to consider combining some boards and commissions and agreed to provide the Committee with a list of Governor appointees showing that more Democrats than Republicans have been appointed. The Committee created a working group to seek advice from the Governor’s Office on legislation that would reduce the requirements for board and commission membership. The group should consider consolidating or eliminating boards. The group will be comprised of two members from each house, who will be appointed by the chairmen. Senators Scott and Pappas and Representatives Byrd and Paxton were appointed to the working group. Co-Chairman Zwonitzer will contact the Governor's Office and make it aware of the working group.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

Recall Elections LSO Attorney Ian Shaw discussed Wyoming, Colorado and Wisconsin law regarding recall elections. The relevant statutes were presented to the Committee and are included in Appendix 3, “Recall Elections.” The Colorado and Wisconsin laws allow a broad range of elected officials to be recalled. Wyoming law provides for the recall of elected officials in cities or towns electing a commission type of governance. Representative Edwards is in favor of creating the ability to recall any elected official in Wyoming. Representative Lindholm believes the issue should be considered and that Wyoming's single law on recall should be repealed in favor of a more uniform approach. Senator Scott noted that recall procedures are often abused by special interests. Co-Chairman Zwonitzer asked for public comment. Julie Freese, Fremont County Clerk, noted that a recall election costs at least $40,000. Ms. Nighswonger did an analysis of recall elections last year and found that the process costs approximately $1.9 million for a statewide election. Mr. Allred believes the discussion of recall elections is valid and believes that Wyoming needs some process for recalling elected officials. The Committee chose not to have legislation drafted related to recall elections.

Driver’s License Requirements for Voter Registration Bob Kubichek, E.L.L.A., discussed a handout on Wyoming voter registration challenges created by our current laws, included in Appendix 3, “Election Code Revisions”. Julie Freese, Fremont County Clerk, discussed Mr. Kubichek's document and believes that current voter registration requirements are appropriate.

Voter Registration Expiration Ms. Freese discussed why a voter's registration expires after missing one election. The reason to allow voter registration to expire after missing one election is to keep electors who have died or moved away off of the voter registration list.

Campaign Finance Peggy Nighswonger gave the Committee an update on the implementation of electronic pollbooks in various Wyoming locations. All the necessary changes to the state's system have been accomplished. Currently, e-pollbooks are being developed and the Secretary of State’s office will begin testing them in September. Campaign finance changes also are being implemented consistent with the laws recently passed by the Legislature. Ms. Nighswonger also testified about a new 9th Circuit Court of Appeals decision, Lair v. Bullock, which indicates that individual campaign contribution limits may be subject to challenge unless they are necessary to control fraud.

SECURITIES ACT REVISIONS AND ENFORCEMENT Karen Wheeler, Kelly Janes and Ryan Anderson from the Secretary of State's Office presented information regarding suggested changes to Wyoming's Uniform Securities Act as included in Appendix 5. Wyoming's Act needs to be updated. The Secretary of State's Office will provide the Committee with a side-by-side comparison of proposed changes at the Committee's next meeting.

MISCELLANEOUS Attorney Scott Meier discussed changes to W.S. 17-29-304, as outlined in a handout he provided to the Committee, included as Appendix 6. The Wyoming Supreme Court recently issued an opinion in which it considered whether to pierce the limited liability of a one-member LLC in order to allow the plaintiffs to reach the LLC owner's individual assets. Mr. Meier testified that the Court considered the LLC's tax code elections, specifically its election to be treated as a "disregarded entity," as one factor in favor of

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

allowing a piercing. Mr. Meier proposed legislation which would prohibit a “disregarded entity” tax election from being considered. Mr. Meier explained that an LLC should not be forced to choose between asset protection and a tax election. On a voice vote, the Committee passed a motion to have legislation drafted consistent with the suggestions contained in Mr. Meier's handout, Appendix 6.

SPECIAL DISTRICTS Special District Overview Ms. Freese. Fremont County Clerk, provided the Committee an update on election and budget related issues regarding special districts. She covered the information contained in Appendix 7.

Special Districts-limited terms 15LSO-0199 Representative Winters discussed 15 LSO 199-Special districts-limited terms, included in Appendix 3, “Special Districts.” The legislation would make continuation of a special district subject to a vote every twenty years. Representative Winters believes that some special districts have outlived their useful lives. Other districts continue to maintain large monetary reserves without being subject to adequate voter control. Eight types of special districts are listed in W.S. 22-29-103, all of which have a natural length of more than twenty years. Consequently, Representative Winters suggested that these districts could be redefined as “infrastructure districts” and made subject to a longer term of existence. Current law allows special districts to be dissolved, but many outdated districts have no person to dissolve them. Representative Winters believes this legislation is a good starting point toward handling outdated special districts. He expects that changes needed to be made to the legislation. The Committee discussed the fact that some districts already are subject to voter approval through the continuation of their mill levies or otherwise.

The Committee received public comment. Dennis Hemmer, Wyoming Association of Conservation Districts, discussed the available petition and recall options for special districts. He believes the Committee should look at making the existing provisions work, not adding new provisions. Rich Cummings, Department of Audit, testified as to the Department of Audit's work to train districts in each county to improve their auditing and reporting processes.

The Committee decided that it would be useful to study the differences between the various types of special districts. The Committee would like to develop a matrix of district-related elements including district types, voting procedures, formation requirements, election procedures, funding options, public accountability and termination procedures. Laramie County Clerk Debbye Lathrop has already begun creating a matrix similar to that requested by the Committee. Ms. Lathrop will provide her matrix to the Committee at its next meeting.

MEETING RECESS The Committee recessed at 7:05pm.

CALL TO ORDER (JUNE 4, 2015 8:30 AM) Representative Zwonitzer called the meeting to order at 8:30 a.m.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

LOCAL GOVERNMENT FINANCES Co-Chairman Case updated the Committee on the work of the Joint Revenue Interim Committee concerning local government finance issues. The Revenue Committee may consider local governments' ability to make investments and the possibility of creating a pool for local government investments.

Shelley Simonton, Wyoming Association of Municipalities, Scott Badley, City of Sheridan, and Peter Obermueller, Wyoming County Commissioners Association, discussed local government finances. Ms. Simonton presented and discussed a letter to the Committee, included as Appendix 8. She explained important distinctions between cities/towns and counties. Importantly, counties are independent and cities/towns are political subdivisions of the state. The Revenue Committee would like to work with the Corporations Committee to help cities and towns.

Ms. Simonton described her meeting with Chairman Madden and Senator Kinskey to look at hardship funding for counties. Chairman Madden has a spreadsheet which indicates the counties that receive the most and the least amount of funding. Similar information would be useful for cities and towns. Senator Kinskey would like to consider whether enterprise fund fees are being set at a rate sufficient to make operations self-sustaining, without state funding. Ms. Simonton and Mr. Obermueller are constructing a long-term strategic plan which will address city and town funding. They will present the plan to the Revenue Committee in September. Ms. Simonton suggested that this Committee hear the report at its next meeting. Mr. Obermueller and Ms. Simonton believe a comprehensive approach to local funding is necessary and that it may take several biennium to accomplish the necessary changes.

Senator Scott suggested that the Committee consider loosening the requirement that cities and towns impose all available mill levies before qualifying for state aid. He believes sales and severance tax distribution levels might be a better basis upon which to qualify for state aid.

Pete Obermueller discussed a report that the Wyoming County Commissioners Association makes every year outlining county revenues, included in Appendix 9. He discussed discretionary distributions from the Legislature to local governments and would like a better understanding of the goals behind these distributions. Mr. Obermueller also discussed power equalization, where the state makes each local government's taxing authority the same. Co-Chairman Case discussed ways to fund local governments with mill levies, extending mill levies by creating special districts, sales tax, enterprise funding or discretionary funding from the state, including grants from the State Land and Investment Board. Representative Kirkbride would like to create an emergency fund for poor counties.

The chairmen will coordinate with the Joint Revenue Committee and consider a joint education session to consider the strategic plan being prepared by Ms. Simonton and Mr. Obermueller.

By voice vote, the Committee passed a motion to have a bill drafted on local funding, based on a prior bill addressing Teton County mill levies. LSO will identify the prior legislation.

The Committee also would also like to consider codification of various budget bill provisions related to local government funding at the next meeting. LSO will provide a memo on this issue to the Committee.

LSO was directed to contact Senator Tom Kinnison about his legislation from approximately 20 years ago which provide a potentially useful equalization formula.

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

URBAN RENEWAL-DOWNTOWN DEVELOPMENT; MAIN STREET BUSINESSES; ZONING Lori Urbigkit, Wyoming Association of Realtors, discussed the information included in Appendix 10. Ms. Urbigkit discussed Wyoming's urban renewal statutes. Although the law contains some archaic language, she is not suggesting any changes. Ms. Urbigkit discussed the use of eminent domain for the purpose of urban renewal. She believes the use of eminent domain is allowed, but not for private use.

Representative Byrd introduced legislation during the 2015 General Session concerning urban renewal. That legislation may be discussed at the Committee's next meeting.

EMERGENCY 911 SERVICES-EFFICIENCY/NEXT GENERATION TECHNOLOGY Mr. Adsit, Campbell County, and Mr. Glen Crumpton, Laramie County, provided an update concerning county efforts to upgrade and maintain emergency 911 systems. Counties that are purchasing new systems are purchasing equipment that is not next-generation ready, but which is capable of being upgraded. Counties have not been able to work together because of the cost of integration. The Committee discussed the possibility of new systems that could operate throughout the state. Co- Chairman Case discussed 15 LSO 262-Next generation 911-task force, included in Appendix 3, “Emergency 911.” This legislation would create a task force to coordinate statewide next generation 911capabilities. Significant money could be saved by adopting a coordinated effort and by consolidating facilities. Mr. Adsit and Mr. Crumpton warned that it might be difficult to find a sufficient number of qualified employees in any one place to operate a consolidated facility.

The Committee will hold a four hour, voluntary meeting after the Committee adjourns its second meeting day in September. All interested parties will be invited to the meeting to consider emergency 911 planning and state-wide / regional coordination. Members of the executive branch will be invited.

PUBLIC SERVICE COMMISSION Chairman Al Minier and Chris Petrie with the Public Service Commission (PSC) gave the Committee an update on the mission, responsibilities and strategic plan of the PSC. They discussed federal issues which are included on the maps in Appendix 11. The maps show the federal government’s changing plans for providing Universal Service Funds to various areas within Wyoming. The PSC is concerned about areas that will not be qualified for funding. Mr. Minier described the PSC’s actions in coordinating the Connect America program with telecommunications carriers. Kristin Lee with CenturyLink discussed the Connect America fund. CenturyLink likely will participate in the fund which will provide $48 million dollars over six years and extend service to 15,000 households.

Mr. Minier also discussed the President’s clean power plan. The PSC has submitted comments to the federal government to influence CO2 emission targets and to more appropriately identify entities that should receive renewable energy credits. The Department of Environmental Quality will be running the program but the PSC has been filing comments and focusing on the cost of the program to Wyoming. The Governor has made it clear that the first priority is to litigate this matter. The plan, as currently proposed, likely will significantly increase electric rates for Wyoming consumers. Mr. Minier does not believe that renewable energy implementation has significantly increased the cost of electricity in Wyoming.

Bryce Freeman, Consumer Advocate, commented on consumer electric rates and the risks that they will increase if the President's clean power plan is implemented. Chris Petrie discussed the handout, included in Appendix 12, regarding consumer price rates and influences. Ken Lay discussed decreasing demand

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

for Wyoming's electricity. Mr. Lay also discussed factors impacting pricing and the allocation of costs between types of users (industrial vs. residential). Jody Levin with Rocky Mountain Power discussed renewable energy portfolio impacts on rates and provided the Committee the handout included as Appendix 13. Joe Milczewski, Black Hills Corp., will provide comments once final rules on clean power are promulgated by the EPA.

FUTURE MEETING DATES The Committee will meet September 8-9 in Buffalo and November 17-18 in Cheyenne.

MEETING ADJOURNMENT There being no further business, Co-Chairman Case adjourned the meeting at 12:45 p.m.

Respectfully submitted,

Senator Cale Case, Co-Chairman

JOINT CORPORATIONS, ELECTIONS, & POLITICAL SUBDIVISIONS COMMITTEE Summary of Proceedings

Committee Meeting

Materials Index

Appendix Agenda Item Appendix Description Appendix Provider

1 Committee Sign-In Sheet Lists meeting attendees Legislative Service Office

2 Committee Meeting Provides an outline of the topics the Legislative Service Office Agenda Committee planned to address at meeting

3 Committee Notebook Provides handouts, background material Legislative Service Office and research to Committee members

4 Pharmacy Benefit Letters concerning pharmacy benefit Wyoming Pharmacy Managers manager regulation Association, RxPlus Pharmacies and Wyoming Retail Association, CVS Health and PCMA

5 Wyoming Uniform Wyoming Uniform Securities Act Update Secretary of State Securities Act

6 Limited Liability Suggested Amendment to W.S. 17-29-304 Scott Meier Companies

7 Special Districts Special Districts Update Julie Freese, Fremont County Clerk

8 Local Government Letter on local government finances Wyoming Association of Finances Municipalities

9 Local Government Revenue Estimating Manual Wyoming County Finances Commissioners Association

10 Urban Renewal Economic Competitiveness Document Wyo. Realtors Association

11 Public Service Commission Map of Universal Service Fund Availability Public Service Commission

12 Public Service Commission Electric Rate Increases Public Service Commission

13 Public Service Commission Letter from Utilities Concerning Electric Rocky Mountain Power Rates

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WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEB SITE www.wyoleg.gov