03/20/1996 03:17 PM House L&C

 HB 482 - STATE PROCUREMENT PRACTICES & PROCEDURES                           
 Number 0119                                                                   
                                                                               
 CHAIRMAN KOTT announced that the next order of business to come               
 before the House Labor and Commerce Committee was HOUSE BILL NO.              
 482                                                                           
 "An Act relating to state procurement practices and procedures; and           
 providing for an effective date."  He asked if anyone from the                
 Department of Administration was present to testify.  The Chairman            
 then announced that Dugan Petty would testify with regard to the              
 proposed amendment to HB 482.                                                 
                                                                               
 DUGAN PETTY, Director, Division of General Services, Department of            
 Administration, stated that the proposed amendment to HB 482                  
 attempts to address the committee's previous questions regarding              
 bidders who wished to bring a protest.  He noted that the                     
 underlined section in the committee members' packets would replace            
 the underlined section in the previous version of the bill.  It               
 allows the procurement officer to establish a shorter period of               
 time in the bid, so that a protestor could bring a bid protest                
 forward in less than 10 days.  It also, in the second sentence,               
 allows a protestor of a solicitation to bring a protest forward               
 just prior to bid opening, if the bid solicitation period has been            
 shortened from the full notice period.  Finally, the proposed                 
 amendment states that if a pre-bid conference is held within 12               
 days of bid opening, then a protest of a solicitation could be                
 brought right up to the time of bid opening or proposal submission.           
 Mr. Petty noted that the intent was to allow sufficient time for a            
 bidder to respond to any issues found at the bid opening.                     
                                                                               
 Number 0253                                                                   
                                                                               
 REPRESENTATIVE ELTON asked for clarification that the proposed                
 amendment would replace only the underlined language.                         
                                                                               
 MR. PETTY responded in the affirmative.                                       
                                                                               
 REPRESENTATIVE ELTON moved that the committee adopt the proposed              
 Amendment 1.  There being no objections, Amendment 1 to HB 482 was            
 adopted.                                                                      
                                                                               
 Number 0404                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG offered an amendment to delete Sections 4,            
 5, 6 and 7 in their entirety.  These are related to leasing                   
 procedures, which exempt lease purchase agreements up to $2 million           
 five hundred thousand or 5,000 square feet of office space, and               
 allow lease extensions of up to ten years or 10 percent.  He stated           
 that these items need further review.                                         
                                                                               
 REPRESENTATIVE KOTT objected.                                                 
                                                                               
 MR. PETTY stated the department believes that Sections 4 and 5                
 allow it to be more effective, and to save the state money through            
 a more streamlined process.  He asserted that the department would            
 exercise judgment, and make good business decisions.                          
                                                                               
 Number 0311                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG asserted that Section 5 would grant the               
 state an automatic renewal option on any expiring lease, which                
 creates an unfair situation in the real estate market.  He stated             
 that such leases should be put out for competitive bid.  He                   
 requested that the Chairman hold the bill, so that the committee              
 could look at it more closely.  He also objected to Section 36,               
 which is related to adjustments to leases being made within 30                
 days.                                                                         
                                                                               
 MR. PETTY suggested that perhaps extending the period to 90 days              
 would alleviate the problem.                                                  
                                                                               
 REPRESENTATIVE ROKEBERG responded that on certain contracts, 90               
 days might be too long.                                                       
                                                                               
 MR. PETTY noted that there is currently no statute of limitations             
 on when claims can be brought against the state on expired                    
 contracts.  This language attempts to address that problem.                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that he agrees a time frame is                 
 necessary, but that a provision relating to utility charges for               
 leasehold property should also be included.  He noted that in some            
 cases, an adjustment clause allows a landlord to back-bill a tenant           
 for increased utility rates.  This could take several months,                 
 sometimes as long as six to eight months.                                     
                                                                               
 CHAIRMAN KOTT asked Mr. Petty to confer with Representative                   
 Rokeberg, and stated that HB 482 would be held over until the next            
 meeting.  He further noted that, since the committee no longer had            
 a quorum, all other bills scheduled would also be held over until             
 the next meeting.