Legislature(2005 - 2006)

04/22/2005 02:44 PM House JUD


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 257 - STATE PROCUREMENT ELECTRONIC TOOLS                                                                                   
                                                                                                                                
2:45:32 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE  announced that the  first order of  business would                                                               
be HOUSE  BILL NO.  257, "An  Act relating  to a  procurement and                                                               
electronic  commerce  tools  program for  state  departments  and                                                               
instrumentalities of  the state;  and providing for  an effective                                                               
date."    [Before  the  committee  was  HB  257,  as  amended  on                                                               
4/18/05.]                                                                                                                       
                                                                                                                                
CHAIR McGUIRE, speaking as chair  of the House Judiciary Standing                                                               
Committee, sponsor  of HB 257,  relayed that although  a proposed                                                               
committee  substitute  (CS)  for  HB  257,  Version  24-LS0826\Y,                                                               
Bannister, 4/21/05, was  available for adoption as  a work draft,                                                               
the  committee  must  also readopt  the  preferences  section  of                                                               
Conceptual  Amendment 1,  as amended,  to HB  257 -  the original                                                               
version  of the  bill  - which  was adopted  at  the bill's  last                                                               
hearing.    She explained  that  Version  Y simply  extends,  for                                                               
another year,  the sunset  provided for  in the  2003 legislation                                                               
originally authorizing the pilot project.                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to adopt  the proposed CS  for HB
257, Version 24-LS0826\Y, Bannister,  4/21/05, as the work draft.                                                               
There being no objection, Version Y was before the committee.                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG  made  a motion  [to  adopt  Conceptual                                                               
Amendment 1]  to "meld into"  Version Y [the amendment  which had                                                               
been adopted  to HB  257, that being  Conceptual Amendment  1, as                                                               
amended with  regard to proposed subsection  (c) referencing only                                                               
proposed subsections  (d)-(r), and  which prior to  being amended                                                               
read:                                                                                                                           
                                                                                                                                
                             A BILL                                                                                           
                      FOR AN ACT ENTITLED                                                                                     
     "An  Act  relating  to  a  procurement  and  electronic                                                                  
     commerce  tools  program   for  state  departments  and                                                                  
     instrumentalities of  the state;  and providing  for an                                                                  
     effective date."                                                                                                         
                                                                                                                              
     BE  IT  ENACTED BY  THE  LEGISLATURE  OF THE  STATE  OF                                                                  
     ALASKA:                                                                                                                  
                                                                                                                                
     *  Section 1.   AS  36.30 is  amended by  adding a  new                                                                  
     section to article 1 to read:                                                                                              
          Sec. 36.30.093.  State procurement and electronic                                                                   
     commerce tools program.                                                                                                  
          (a) The department may enter into a program under                                                                     
     which the  department contracts with a  person from the                                                                    
     private sector  to provide procurement services  and to                                                                    
     provide  for   the  delivery  and  use   of  electronic                                                                    
     commerce  tools.   Notwithstanding any  other provision                                                                    
     of this  chapter, the contract  shall be  awarded under                                                                    
     AS 36.30.100 - 36.30.265.                                                                                                  
          (b) Notwithstanding any other provision of this                                                                       
     chapter,  all state  departments and  instrumentalities                                                                    
     of the state may  participate in the program authorized                                                                    
     by (a) of this section.                                                                                                    
          (c) A procurement conducted by the person                                                                             
     selected under  (a) of this  section is not  subject to                                                                    
     this chapter or to AS  36.15.  However, the procurement                                                                    
     is subject to (d) -  (u) of this section.                                                                                  
          (d) A contract based on solicited bids shall be                                                                       
     awarded  to  the   lowest  responsive  and  responsible                                                                    
     bidder  after  an  Alaska  bidder  preference  of  five                                                                    
     percent  has been applied for evaluation purposes.                                                                         
          (e) If a bidder qualifies as an Alaska bidder and                                                                     
     is offering services through an  employment program,  a                                                                    
     15  percent  cost  preference will  be  applied  during                                                                    
     evaluation.                                                                                                                
          (f) If a bidder is an Alaska bidder and is a                                                                          
     qualifying entity,  a ten percent cost  preference will                                                                    
     be applied during evaluation.                                                                                              
          (g) If a bidder is an Alaska bidder and if 50                                                                         
     percent or more  of the bidder's employees  at the time                                                                    
     the bid  is submitted are persons  with disabilities, a                                                                    
     ten  percent cost  preference  will  be applied  during                                                                    
     evaluation.   The  contract must  contain a  promise by                                                                    
     the  bidder   that  the  percentage  of   the  bidder's                                                                    
     employees  who  are   persons  with  disabilities  will                                                                    
     remain at 50 percent or more during the contract term.                                                                     
          (h) Insurance-related contracts shall be awarded                                                                      
     to the  lowest responsive and responsible  bidder after                                                                    
     an Alaska  bidder preference of  five percent  has been                                                                    
     applied  during   evaluation.    In   this  subsection,                                                                    
     "Alaska bidder" means a person  who is an Alaska bidder                                                                    
     and an Alaska domestic insurer.                                                                                            
          (f) Alaska products shall be used whenever                                                                            
     practicable  in   procurements  for  a   state  agency.                                                                    
     Recycled Alaska  products shall be  used when  they are                                                                    
     of  comparable   quality,  of  equivalent   price,  and                                                                    
     appropriate for the intended use.                                                                                          
          (g) If  a bid  indicates that the product(s)                                                                          
     being  purchased will  be recycled  Alaska products,  a                                                                    
     cost preference of five percent  will be applied during                                                                    
     evaluation.                                                                                                                
          (h) In a project financed by state money in which                                                                     
     the  use of  timber,  lumber,  and manufactured  lumber                                                                    
     products   is  required,   only  timber,   lumber,  and                                                                    
     manufactured lumber products  originating in this state                                                                    
     from local forests shall be used wherever practicable.                                                                     
          (i) When agricultural products are purchased , a                                                                      
     seven percent  cost preference  will be  applied during                                                                    
     evaluation  to agricultural  products harvested  in the                                                                    
     state.                                                                                                                     
          (j) When fisheries products are purchased, a                                                                          
     seven percent  cost preference  will be  applied during                                                                    
     evaluation   to   fisheries   products   harvested   or                                                                    
     processed within the jurisdiction of the state.                                                                            
          (k) If a bid or offer designates the use of an                                                                        
     Alaska  product  that  is identified  in  the  contract                                                                    
     specifications and  designated as a Class  I, Class II,                                                                    
     Class  III state  product under  AS  36.30.332, a  cost                                                                    
     preference equal to the  percentage established for the                                                                    
     class  under AS  36.30.332(c)  will be  applied to  the                                                                    
     product  during  evaluation.   The  program  contractor                                                                    
     shall  use  the  Alaska  product  preference  list,  as                                                                    
     described  in  3  AAC  92.090(a),   as  the  basis  for                                                                    
     establishing   the   percentage   of   Alaska   product                                                                    
     preference.                                                                                                                
          (l) If a contractor designates the use of an                                                                          
     Alaska product  in a bid  or proposal and fails  to use                                                                    
     the  designated  product  for  a  reason  within  their                                                                    
     control,  each  payment  under the  contract  shall  be                                                                    
     reduced  according  to the  schedule  set  forth in  AS                                                                    
     36.30.330(a).                                                                                                              
          (m) Except as provided under (q) of this section,                                                                     
     all preferences are cumulative and  shall be applied in                                                                    
     the order referenced under (d) - (n) of this section.                                                                      
          (n) A bidder may not receive a preference under                                                                       
     this section  under both (d)  and (e), (d) and  (f), or                                                                    
     (e) and (f) for the same contract.                                                                                         
          (o) In order to qualify for a preference under                                                                        
     (e), (f),  or (g) of  this section, a bidder  shall add                                                                    
     value  by actually  performing, controlling,  managing,                                                                    
     and  supervising the  services  provided,  or a  bidder                                                                    
     shall  have   sold  supplies  of  the   general  nature                                                                    
     solicited to other state  agencies, governments, or the                                                                    
     general public.                                                                                                            
          (p) When awarding a contract under competitive                                                                        
     sealed   proposals,   the  program   contractor   shall                                                                    
     consider  the preferences  described  in this  section.                                                                    
     Applicable preferences  shall be applied solely  to the                                                                    
     cost portion of the proposals during evaluation.                                                                           
          (q) Informal procurements conducted by the                                                                            
     program  contractor  are  subject  to  the  preferences                                                                    
     described in this section.                                                                                                 
          (r) In this section,                                                                                                  
               (1) "agency" has the meaning given in AS                                                                         
     36.30.990(1);                                                                                                              
               (2) "agricultural products" has the meaning                                                                      
     given in AS 36.15.050(g)(1);                                                                                               
               (3) "Alaska bidder" has the meaning given in                                                                     
     AS 36.30.170(b);                                                                                                           
               (4) "Alaska products" has the meaning given                                                                      
     in AS 36.30.338(1);                                                                                                        
               (5) "contract" has the meaning given in AS                                                                       
     36.30.990(7);                                                                                                              
               (6) "employment program" has the meaning                                                                         
     given in AS 36.30.990(11);                                                                                                 
               (7) "instrumentalities of the state" means a                                                                     
     state  public  corporation,   a  state  enterprise,  or                                                                    
     another  administrative unit  of state  government that                                                                    
     handles  its procurement  and  supply  management in  a                                                                    
     manner  that  is  separate from  a  department  of  the                                                                    
     state;                                                                                                                     
               (8) "qualifying entity" has the meaning                                                                          
     given in AS 36.30.170(e)(1)-(4);                                                                                           
               (9) "person" has the meaning given in AS                                                                         
     36.30.990(16);                                                                                                             
               (10) "person with a disability" has the                                                                          
     meaning given in AS 36.30.170(k);                                                                                          
               (11)    "program   contractor"    means   the                                                                    
     contractor  selected by  the department  to manage  the                                                                    
     program;                                                                                                                   
               (12) "recycled Alaska product" has the                                                                           
     meaning given in AS 36.30.338(4).                                                                                          
     * Sec.  2.  The uncodified  law of the State  of Alaska                                                                  
     enacted  in  secs. 2  and  3,  ch.  51, SLA  2003,  are                                                                    
     repealed.                                                                                                                  
     * Sec.  3.  The uncodified  law of the State  of Alaska                                                                  
     is amended by adding a new section to read:                                                                                
          APPLICABILITY.  Nothing in this Act affects the                                                                       
     validity  of   actions  taken  by  the   Department  of                                                                    
     Administration  under  ch.  51, SLA  2003,  before  the                                                                    
     effective date of this Act.                                                                                                
     * Sec. 4.   This Act takes effect  immediately under AS                                                                  
     01.10.070(c).                                                                                                              
                                                                                                                                
CHAIR McGUIRE  indicated that [Conceptual Amendment  1] would put                                                               
the bidder preferences back in the bill.                                                                                        
                                                                                                                                
REPRESENTATIVE GARA objected for the purpose of discussion.                                                                     
                                                                                                                                
CHAIR McGUIRE reiterated that Version  Y simply extends the pilot                                                               
project, and that [Conceptual Amendment  1] would ensure that the                                                               
bidder   preferences  therein   would  apply   to  any   contract                                                               
authorized by the 2003 legislation.                                                                                             
                                                                                                                                
REPRESENTATIVE  GARA said  he wants  to  ensure that  [Conceptual                                                               
Amendment 1] really does what Chair McGuire intends it to do.                                                                   
                                                                                                                                
VANESSA  TONDINI, Staff  to Representative  Lesil McGuire,  House                                                               
Judiciary   Standing   Committee,   Alaska   State   Legislature,                                                               
reiterated that  [Conceptual Amendment 1, as  amended], which was                                                               
brought  forth by  the administration,  had been  adopted at  the                                                               
fill's last hearing for application to the original legislation.                                                                
                                                                                                                                
REPRESENTATIVE GARA said he wanted  to ensure that [Version Y and                                                               
Conceptual  Amendment  1]  would  not expand  the  current  pilot                                                               
project to more departments.                                                                                                    
                                                                                                                                
CHAIR  McGUIRE  said  [they would  not],  again  reiterating  her                                                               
belief  that  [Conceptual Amendment  1]  simply  adds the  bidder                                                               
preferences to  Version Y.   She noted  that Alaska  Supply Chain                                                               
Integrators and other [contractors] object to [Version Y].                                                                      
                                                                                                                                
REPRESENTATIVE   GRUENBERG   withdrew   his  motion   [to   adopt                                                               
Conceptual Amendment 1].                                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG then restated  the motion, that being to                                                               
adopt a new  [Conceptual Amendment 1], to  "incorporate Section 1                                                               
[of Conceptual Amendment 1, as amended,] into this bill.                                                                        
                                                                                                                                
MS. TONDINI  attempted to clarify that  [new Conceptual Amendment                                                               
1]   would  incorporate   subsections   (c)-(r)  [of   Conceptual                                                               
Amendment 1].                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG   concurred  and,  in  response   to  a                                                               
question, posited  that the drafter would  insert [new Conceptual                                                               
Amendment 1] in the proper location.                                                                                            
                                                                                                                                
REPRESENTATIVE GARA said he would not  hold the bill up but would                                                               
instead review the language later to  ensure that it did what the                                                               
committee intended.  He then  removed his objection to the motion                                                               
[to adopt new Conceptual Amendment 1].                                                                                          
                                                                                                                                
CHAIR  McGUIRE  stated  that [new  Conceptual]  Amendment  1  was                                                               
adopted.                                                                                                                        
                                                                                                                                
2:50:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  turned  attention   to  Section  2  of                                                               
[Conceptual Amendment 1, as amended,  as it was intended to apply                                                               
to the original  version of HB 257] and said  he didn't think the                                                               
committee ought to adopt that provision.                                                                                        
                                                                                                                                
The committee took an at-ease from 2:51 p.m. to 2:52 p.m.                                                                       
                                                                                                                                
2:52:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved  to report the proposed  CS for HB
257, Version 24-LS0826\Y, Bannister,  4/21/05, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GARA objected  [for the  purpose of  discussion],                                                               
and offered  his understanding that [new  Conceptual Amendment 1]                                                               
would  incorporate subsections  (c)-(r) [of  Conceptual Amendment                                                               
1, as amended].                                                                                                                 
                                                                                                                                
CHAIR  McGUIRE, after  ascertaining  that there  were no  further                                                               
objections  to  the  motion, announced  that  CSHB  157(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                

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