Legislature(2011 - 2012)CAPITOL 106
03/29/2011 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB101 | |
| HB182 | |
| HB204 | |
| HB205 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 101 | TELECONFERENCED | |
| *+ | HB 182 | TELECONFERENCED | |
| *+ | HB 204 | TELECONFERENCED | |
| *+ | HB 205 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 204-STATE PROCUREMENT CODE
[Contains discussion of HB 205.]
9:12:10 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 204, "An Act relating to the State Procurement Code,
including the use of small procurement provisions for certain
amounts of leased space, the requirement of Alaska business
license proof for Alaska bidder and other procurement
preferences, the registration of construction contract bidders
and offerors, the establishment and maintenance of lists of
persons who want to provide supplies or services to the state,
state agencies, and state instrumentalities, electronic bids and
proposals, small procurements, and writings; and providing for
an effective date."
9:12:41 AM
REPRESENTATIVE ANNA FAIRCLOUGH, Alaska State Legislature, as
sponsor, presented HB 204. She explained that during the
Twenty-Sixth Alaska State Legislature, while bringing forth a
veterans' procurement bill that addressed Alaska bidder
preferences, she discovered that procurement preferences were
"scattered throughout the code" and the state's "large
procurement versus small procurement code" had not been updated
in a long time. Representative Fairclough said HB 204 would:
increase the square footage for small procurement from 3,000 to
7,000 square feet; increase small procurement from 50,000 to
100,000 square feet for professional services and from 100,000
to 200,000 for construction; and eliminate "the employers for
the disabled." She said House Bill 225 - the procurement bill
of the last legislature - was split into HB 204 and HB 205, and
the only significant difference between the former bill and
current bills is that neither HB 204 nor HB 205 has anything to
do with "the offeror's preference."
REPRESENTATIVE FAIRCLOUGH, in response to Chair Lynn, explained
that during the Twenty-Sixth Alaska State Legislature, a
veterans' preference bill was passed, which allowed stackable
credit limited by $5,000 "on top of every other preference that
an individual or a company could qualify for." She said HB 204
focuses specifically on statutes related to Alaska's small
procurement codes.
9:15:00 AM
REPRESENTATIVE JOHANSEN asked the sponsor to confirm if the
"offeror's preference" had been removed.
9:15:28 AM
REPRESENTATIVE FAIRCLOUGH responded yes.
9:18:00 AM
REPRESENTATIVE GRUENBERG asked why the bill sponsor chose to use
two bills as a vehicle for the remaining content of House Bill
225.
REPRESENTATIVE FAIRCLOUGH explained that she put the least
controversial issue - the changes to the small procurement code
- in HB 204. In response to Representative Gruenberg, she said
the veteran [preference] was repealed and realigned in one
section of HB 205.
REPRESENTATIVE GRUENBERG asked what the reason is behind raising
the procurement code requirements and how many contracts will no
longer be done through the procurement code as a result.
9:20:01 AM
REPRESENTATIVE FAIRCLOUGH clarified that the bill is not about
not being in the procurement code, but is about raising the
limits for small procurement acquisitions. She explained that
the purpose of doing this is to reduce the load being carried
currently by those in charge of procurements and allow them to
focus on "the larger square footage issues." A further result
of HB 204, she said, would be the increase of competition.
9:21:28 AM
VERN JONES, Chief Procurement Officer, Central Office, Division
of General Services, Department of Administration, echoed
Representative Fairclough's response. In response to
Representative P. Wilson, he confirmed that the process for
smaller procurements is easier and may increase the number of
people responding to a request for proposals.
9:25:16 AM
REPRESENTATIVE FAIRCLOUGH paraphrased the sectional analysis,
which read as follows:
Section 1: Amends AS 36.30.080(f)
Increases the threshold limit for small procurements
of leased space from 3,000 square feet to 7,000 square
feet, consistent with section 7.
Section 2: Amends AS 36.30.110(b)
Clarifies Alaska business license requirements for
competitive sealed bids and qualification for the
Alaska bidder preference. Change would require bidders
to show proof of their Alaska Business License prior
to award, but would require the license at the time of
bid submission in order to qualify for the Alaska
bidder preference.
Section 3: Amends AS 36.30.130(a)
Eliminates reference to a procurement officer's use of
vendor lists, reflecting the repeal of the statute
establishing the vendor lists, consistent with section
10.
Section 4: Amends AS 36.30.210(b)
Clarifies construction contractor registration
requirements, now explicitly requiring registration
before award of a contract.
Section 5: Amends AS 36.30.210(e)
Clarifies Alaska business license requirements for
competitive sealed proposals and qualification for the
Alaska bidder preference using language consistent
with that used in section 2.
Section 6: Amends AS 36.30 by adding a new section
36.30.290
Adds a new section allowing an agency to accept
electronic bids and proposals. Session: Alaska State
Section 7: Amends AS 36.30.320(a)
Increases the threshold under which a state agency may
use informal procurement process to $100,000 for goods
and professional services, to $200,000 for
construction, and 7,000 square feet for lease of
space.
Section 8: Amends AS 36.30.655
Eliminates reference to the removal of debarred or
suspended persons from vendor lists, reflecting the
repeal of a law establishing the vendor lists,
consistent with section 10.
Section 9: Amends AS 36.30.990
Adds new definitions for "in writing" and "written."
Section 10: Repeals statute establishing the vendor
list.
Section 11: Amends the uncodified law of the State of
Alaska
Clarifies the application of the procurement act to
pending solicitations during transition period.
Section 12: Effective Date
Language making the procurement act effective
immediately.
9:27:55 AM
REPRESENTATIVE GRUENBERG directed attention to Section 11(b), on
page 4, lines 17-19, which read as follows:
(b) Notwithstanding (a) of this section, this Act
applies to procurements or contracts described in
(a)(1) of this section if all parties to the
procurement or contract agree in writing that the
applicable provisions of this Act apply to the
solicitation or contract.
REPRESENTATIVE GRUENBERG described a hypothetical situation in
which both the government and the person who gets a contract
agree that the Act applies, but someone else who did not get a
contract might be aggrieved.
MR. JONES said he thinks practically speaking that would not
happen. He said the division issues procurements under the code
enforced at the time of issuance. He said under HB 204, only
the procurement methodology that would be used to get to an
award would be changed, not the protest and appeal procedures.
REPRESENTATIVE GRUENBERG asked Mr. Jones to confirm that what he
is saying is that the government "would not agree to that."
MR. JONES said that is correct.
REPRESENTATIVE GRUENBERG said with that assurance he thinks HB
204 is a good bill.
9:31:22 AM
REPRESENTATIVE KELLER moved to report HB 204 out of committee
with individual recommendations and the accompanying fiscal
notes.
9:31:30 AM
REPRESENTATIVE JOHANSEN objected.
CHAIR LYNN, in response to the bill sponsor, ascertained that
there was no one else who wished to testify.
REPRESENTATIVE JOHANSEN directed attention to Sections 8 and 10,
which require the commissioner to "maintain a list of all
persons debarred or suspended from consideration" and remove AS
36.30.050, respectively. He expressed concern that the public
be made aware of any person who has been debarred.
9:33:14 AM
MR. JONES responded that [AS 36.30.050] is statute that refers
to the Alaska bidders' list. He explained that the division is
doing away with the bidders' list, because it is an outdated
system that has fallen out of use; an on line system is
currently being used. He stated that the division will continue
to keep the list of debarred individuals.
REPRESENTATIVE JOHANSEN said he understands that, but wants to
ensure that the commissioner's list is made public.
REPRESENTATIVE JOHANSEN removed his objection. There being no
further objection, HB 204 was reported out of the House State
Affairs Standing Committee.
HB 205-PUBLIC PROCUREMENT
9:37:02 AM
CHAIR LYNN announced that the final order of business was HOUSE
BILL NO. 205, "An Act relating to state and public entity
procurement, including the State Procurement Code, procurement
preferences, and contract awards; relating to the meaning of
'Alaska bidder'; and providing for an effective date."
9:37:37 AM
REPRESENTATIVE FAIRCLOUGH, Alaska State Legislature, presented
HB 205 as sponsor. She paraphrased the sponsor statement, which
read as follows:
House Bill 205 makes changes to the state's
procurement code. Collectively, these changes
streamline the procurement code to ensure consistent
application of the law, and results in a more
understandable, efficient procurement process for the
state's business partners as well as our employees who
conduct procurements.
Streamlining is accomplished by simplifying the
application of our many preferences, which is
currently complex and confusing for employees and
vendors requiring a certain level of expertise.
The bill makes application of the preferences uniform
- currently, preferences do not contain the same
language so they must be applied differently. It also
clarifies which preferences are cumulative and those
that may not be combined.
House Bill 205 would add a new section to the
procurement code consolidating the Alaska bidder
preference, Alaska veterans' preference, and other
preferences formerly at AS 36.30.170(b). This section
also simplifies the qualification for the disability
and employment program preferences and eliminates the
seldom used employers of people with disabilities
preference.
With the passage of this legislation, our procurement
process will be simplified and more user friendly to
Alaska business owners and our state workers.
I appreciate your support and consideration of this
legislation.
9:39:55 AM
REPRESENTATIVE JOHANSEN noted that similar legislation was
proposed the prior year, and he asked if any of the language in
Section 15, regarding marine vessels owned by the state, has
been changed from corresponding language in last years' bill.
9:40:18 AM
REPRESENTATIVE FAIRCLOUGH offered her understanding that there
is no change.
CHAIR LYNN offered his understanding that Vern Jones, had nodded
in the affirmative.
9:40:43 AM
REPRESENTATIVE P. WILSON offered her understanding that the bill
sponsor is "consolidating all the Alaska bidder preferences into
one section." She asked for further details regarding the
Alaska veterans' preference and "the one that you eliminated."
9:41:16 AM
REPRESENTATIVE FAIRCLOUGH talked about the Alaska veterans'
preference "stacked" with other preferences, including a
disabled veterans' preference. She said, "With this alignment,
there is one calculation and it is explicitly outlined."
Regarding the "eliminated preference," she related an incident
where a committee chose to eliminate a preference after hearing
testimony from an individual regarding his/her access and use of
a preference. She offered her understanding that the result was
the state's paying more because of the preference without really
receiving the benefit.
9:43:39 AM
VERN JONES, Chief Procurement Officer, Central Office, Division
of General Services, Department of Administration, added that
the Alaska veterans' preference remains unchanged under HB 205;
it is just in another section. Generally speaking, he said, the
only other changes to preferences is that they have all been
given uniform language to make them easier to understand and
apply. One exception is the employers of the disabled
preference. He asked the committee to consider that the state
already has disabled bidder preference and an employment program
preference to benefit developmentally disabled people and
shelter workshops that employ them. He said only two firms
qualify for the employer of the disabled preference; the
requirement is that 50 percent of the workforce must be
disabled. He said what happens is a business will "spin off a
subsidiary" with one disabled employee and an additional
preference, which gives that company an advantage. Mr. Jones
concluded, "We feel that ... it's being taken advantage of; ...
it's not widely used; and I believe it's duplicative."
9:45:17 AM
MR. JONES, in response to Representative Gruenberg, explained
that there is a Blind Vendor Act, which mandates the state to
"solicit qualified, blind-owned businesses" when there are
concession contracts in state facilities. He said that Act is
not affected by HB 205.
9:45:53 AM
REPRESENTATIVE KELLER moved to report HB 205 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 205 was reported out of
committee.
CHAIR LYNN acknowledged that there was another person who wished
to testify and invited him to do so.
9:46:45 AM
SCOTT THORSON, testifying on behalf of himself, thanked the bill
sponsor and Mr. Jones for their work in "cleaning this part of
the procurement code up." He related that he owns a small
company and has done a lot of work for the state over the years.
He expressed his support of HB 205.
9:47:19 AM
CHAIR LYNN restated that HB 205 had been reported out of
committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 CS HB 101 ( ).pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 02 HB0101A.PDF |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 03 HB 101 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 04 Senator Ted Stevens Day Proclamation HB 101.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 05 Ted Stevens Citation HB 101.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 06 Fiscal Note HB 101 - Nov 18 - Ted Stevens Day.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 01 HB 182.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 182 |
| 02 HB 182 - Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 03 HB 182 - Backup Leg Research 2005.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 04 HB 182 - Backup Leg Research 2011.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 182 |
| 05 HB 182 - Backup Publication Spreadsheet.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 06 HB182-GOV-OMB-3-27-11.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 01 HB 204.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 02 HB 204 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 03 HB 204 Sectional Analysis.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 04 HB204-DOA-PUR-3-23-11.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 01 HB 205.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 02 HB 205 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 03 HB 205 Sectional Analysis.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 04 HB205-DOA-PUR-03-23-11.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |