Legislature(2007 - 2008)HOUSE FINANCE 519

03/17/2008 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Delayed to 2:00 pm Today --
+ HB 236 DECEASED VETERAN DEATH CERTIFICATE/HONOR TELECONFERENCED
Moved CSHB 236(MLV) Out of Committee
+ HB 255 DUAL SENTENCING TELECONFERENCED
<Bill Held Over to 3/18/08>
+ HB 406 COMPETITIVE BIDDING FOR BALLOT PREP TELECONFERENCED
Moved CSHB 406(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 364 NOTICE & CONSENT FOR MINOR'S ABORTION TELECONFERENCED
Moved CSHB 364(FIN) Out of Committee
+= HB 348 BOARD OF GAME REGULATIONS TELECONFERENCED
Moved CSHB 348(FIN) Out of Committee
+= HB 417 NONUNION PUBLIC EMPLOYEE SALARY & BENEFIT TELECONFERENCED
Moved CSHB 417(FIN) Out of Committee
HOUSE BILL NO. 406                                                                                                            
                                                                                                                                
     An Act relating to a requirement for competitive                                                                           
     bidding on contracts for the preparation of election                                                                       
     ballots.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ANNA  FAIRCLOUGH,   SPONSOR,  presented  CSHB
406(STA), an act relating to contracting  for the preparation                                                                   
of  election ballots.    The bill  allows  a competitive  bid                                                                   
proposal to  be submitted to  the Division of  Elections. The                                                                   
Division  can set  parameters for  quality, site  inspection,                                                                   
testing,  a  period  for the  award,  and  accountability  of                                                                   
delivering ballots.                                                                                                             
                                                                                                                                
Representative  Fairclough noted  that the only  non-resolved                                                                   
issue is the "Alaska product"  preference on page 4, line 28.                                                                   
She explained  that any  printer in the  state of  Alaska can                                                                   
become contracted as a preferential  provider. The purpose is                                                                   
to promote Alaska hire.                                                                                                         
                                                                                                                                
Representative  Crawford asked what  the genesis of  the bill                                                                   
was. Representative  Fairclough explained that  she was asked                                                                   
why Elections  was exempt from  the procurement  process. She                                                                   
decided to  work to  create an  open and competitive  process                                                                   
for Alaskans.                                                                                                                   
                                                                                                                                
3:41:48 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked about  penalties.  Representative                                                                   
Fairclough   replied  that   all  printers   would  be   held                                                                   
accountable  to  be timely  and  accurate  in all  they  were                                                                   
contracted for.                                                                                                                 
                                                                                                                                
Representative  Gara  asked if  there  could  be a  situation                                                                   
where a dissatisfied  bidder could slow down  the process for                                                                   
getting out a ballot. Representative  Fairclough replied that                                                                   
the time and  quality assurance would be inside  the proposal                                                                   
process.                                                                                                                        
                                                                                                                                
VERN  JONES,   CHIEF  PROCUREMENT   OFFICER,  DEPARTMENT   OF                                                                   
ADMINISTRATION,  explained  that  there  would be  a  protest                                                                   
process  included.   The  bill  is  silent   on  protest  but                                                                   
procurement code  procedures would  be followed.  There would                                                                   
be term contracts  for a number of years to  allow sufficient                                                                   
time for appeals and other eventualities.                                                                                       
                                                                                                                                
3:44:55 PM                                                                                                                    
                                                                                                                                
Representative   Kelly  asked   about   the  Alaska   product                                                                   
provision.  Mr.  Jones  responded  that  the  bill  does  not                                                                   
subject  the printing  of ballots  to  the procurement  code,                                                                   
where the Alaska  better preference, product  preference, and                                                                   
other preferences  reside.  The bill  brings in a  preference                                                                   
identical  to the  procurement code.   The  concern with  the                                                                   
"Alaska  Product" preference  is  a timing  issue.  Currently                                                                   
there is  only one printer on  the list. Many  other printers                                                                   
could get  on the list eventually,  but a company must  be on                                                                   
the list  30 days prior  to the issuance  of the  request for                                                                   
proposals  to qualify.  It then takes  approximately  30 days                                                                   
for the Department  of Commerce to process an  application to                                                                   
be placed on the  list, but the list is only  published twice                                                                   
each  year.  This  could  present  a  problem.  He  suggested                                                                   
increasing   the  Alaska   bidder   preference  by   whatever                                                                   
percentage, and eliminate the product preference.                                                                               
                                                                                                                                
3:47:35 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough  explained  that  the  bill  would                                                                   
become effective in January of  2009. All printers are put on                                                                   
notice.  She personally  contacted  the  current vendor  that                                                                   
currently  holds the  contract.  She noted  that the  current                                                                   
provider has done  a great job for the State;  the bill is in                                                                   
no way a reflection of any performance  concern.  She went on                                                                   
to say  that if  there is  wording for  Alaska preference  it                                                                   
could  cause   problems  as  this  is  not   consistent  with                                                                   
procurement law.                                                                                                                
                                                                                                                                
3:49:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer opened public testimony.                                                                                         
                                                                                                                                
WAYNE STEVENS,  PRESIDENT, ALASKA STATE CHAMBER  OF COMMERCE,                                                                   
spoke  in  support   of  the  changes  to  provide   for  the                                                                   
competitive  bidding   process  and  the  "Made   in  Alaska"                                                                   
preference.                                                                                                                     
                                                                                                                                
CHAZ  SIMMONS,  SALES  MANAGER,  SERVICE  BUSINESS  PRINTING,                                                                   
ANCHORAGE  (Testified   via  teleconference),   testified  in                                                                   
support  of  the  bill.  He agrees  with  the  principals  of                                                                   
competitive bidding. He thought  many Alaskan companies would                                                                   
be able to perform on the product.                                                                                              
                                                                                                                                
3:51:06 PM                                                                                                                    
                                                                                                                                
KERRY  NOBLIN,   PENISULA  PRINTING,  KENAI   (Testified  via                                                                   
teleconference), spoke in support  HB 406.  He underlined the                                                                   
fact  that  currently  there is  only  one  printing  company                                                                   
contracted by the Division of Elections.                                                                                        
                                                                                                                                
3:53:12 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Representative  Fairclough clarified  that preparing  ballots                                                                   
is  not a  simple process,  but requires  exactness and  high                                                                   
quality.  She  stressed the  importance  of the  Division  of                                                                   
Elections being allowed the utmost scrutiny on any bidder.                                                                      
                                                                                                                                
Co-Chair Chenault  MOVED to  REPORT HB  406 out of  Committee                                                                   
with  individual  recommendations  and attached  zero  fiscal                                                                   
note #1 by the Office of the Governor.                                                                                          
                                                                                                                                
CS HB  406 (STA)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation  and with  attached zero fiscal  note #1                                                                   
by the Office of the Governor.                                                                                                  
                                                                                                                                

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