Legislature(2009 - 2010)BARNES 124
03/27/2009 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB151 | |
| HB105 | |
| HJR16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 37 | ||
| = | HB 151 | ||
| *+ | HB 185 | TELECONFERENCED | |
| + | HJR 16 | TELECONFERENCED | |
| += | HB 105 | TELECONFERENCED | |
HJR 16-DISABLED VETERANS PROCUREMENT PREFERENCE 4:13:10 PM REPRESENTATIVE NEUMAN announced that the final order of business would be HOUSE JOINT RESOLUTION NO. 16, Relating to federal procurement preferences for small businesses in the state that are owned and controlled by service-disabled veterans. 4:13:22 PM SANDRA WILSON, Staff, Representative Carl Gatto, on behalf of the prime sponsor, stated that HJR 16 recognizes the sacrifices of the men and women that serve in the military. She stated that they sacrifice the opportunity to start a small business in order to protect our country. This resolution asks the federal agencies to set aside three percent of federal procurement for service-disabled veteran owned businesses. She explained that currently two separate pieces of legislation passed by the Congress mandates three percent of federal procurement for service-disabled veteran owned businesses. Additionally a Presidential order mandates that federal agencies comply with the federal legislation. This resolution asks that the federal agencies in Alaska follow the federal mandate and investigate reasons the federal law requiring agencies to set aside three percent of federal procurement for service-disabled veteran owned businesses is not being followed by federal agencies in Alaska. 4:14:35 PM REPRESENTATIVE NEUMAN inquired as to whether this allows a disabled veteran to partner with a large business and receive advantage on construction contracts. MS. WILSON answered that if the business is owned by a service- disabled veteran, who owns a majority share, or in large business 51 percent must be owned by a service-disabled veteran. 4:15:26 PM REPRESENTATIVE NEUMAN related a scenario in which a service- disabled veteran owned a company. He inquired as to whether he could partner with an XYZ Construction company that employs 300 employees to obtain a preference. MS. WILSON responded that he would not qualify as a service- disabled veteran business under that scenario. She explained that the federal mandate disallows a service-disabled veteran in a large company from qualifying for the preference. In further response to Representative Neuman, Ms. Wilson related her understanding that in a large company the minimum service- disabled veterans would need to be 50 percent plus one employee to qualify for a preference. 4:16:55 PM MCHUGH PIERRE, Director of Communications, Legislative Liaison, Department of Military & Veterans' Affairs (DMVA), stated that the DMVA supports HJR 16. He stated that the DMVA believes this is the right thing to do. He explained the department believes when the federal government makes rules that Alaskans need to live by them. He opined that it is especially important to follow the preference since Alaska has so many veterans. He further opined that the state should do everything it can to see to it that our service-disabled veteran business owners achieve success. He urged members to quickly pass HJR 16. 4:18:05 PM MR. PIERRE, in response to Representative Buch, offered that Alaska's Congressional delegation is the appropriate group to ensure that federal laws are enforced, especially the federal mandate for preferences for service-disabled veterans. 4:19:07 PM REPRESENTATIVE BUCH asked which entities within the federal government have the responsibility for oversight. He opined the testimony will cover this issue. REPRESENTATIVE LYNN inquired as to what percentage of disability would qualify a veteran to the service-disabled veteran status. MR. PIERRE said he did not know. 4:19:51 PM BUTCH WHITING, Owner, Big Four Enterprises, LLC, stated that he is a service-disabled veteran who owns his company. He stated that he supports HJR 16 since it provides hope. He explained that he represents a new generation of veterans. He is a veteran of Iraq and Afghanistan having served four tours in those regions for a total of 10 years, 9 months, and 6 days. He opined that he and many other veterans had to postpone their desires to run organizations and businesses. He highlighted the personal sacrifices that service-disabled veterans have made. He opined that this resolution provides hope for the service- disabled veterans. The federal government has recognized their sacrifices and he hopes that this resolution will provide a means for the state to assist service-disabled veterans. He offered his belief that this is not a handout but a method to offer inspiration for service-disabled veterans to continue to work towards their goals and objectives. He said, "I hope this resolution is passed." He opined a significant number of Alaskans have paid a high price and this resolution could help motivate veterans to pursue dreams that they thought were robbed from them. He urged members to vote for HJR 16. 4:22:28 PM TIM WHEELER, President, Alaska Veterans Business Alliance (AVBA), provided a brief history of service-disabled veteran preferences and federal laws. He stated that 51 percent is the minimum ownership that will qualify a business as a service- disabled veteran business. He opined that the program is self- certified. He highlighted that the service-disabled veteran could provide the DD 214 and the U.S. Department of Veteran's Affairs (VA) Certificate of Disability as proof. He explained that the disability rating can range from zero percent to 100 percent so long as the VA classifies the veteran as a service- disabled veteran. He provided information on federal law such that in June 1999, Public Law 106-50, also called the Veteran Entrepreneurship Act, which created a three percent procurement preference goal for service-disabled veteran businesses, which applies to prime contracts and subcontracts. He stated that Public Law 108-183, the Veterans Benefits Act of 2003 (15 U.S.C. 657f), allows service-disabled veterans to obtain sole source contracts for goods and services used by the U.S. government. In October 2004, President George W. Bush signed Executive Order 13360, which mandates all federal agencies to increase opportunities for service-disabled veteran businesses. He said, "And still, Alaska is left out." He remarked that the federal Public Law 109-461, is also known as "Veterans First." He offered his belief that all contracts bid out by the VA will go to the service-disabled veterans first. He pointed out that if a service-disabled veteran's business is not available, the bid would be opened to competition by everyone. 4:24:59 PM MR. WHEELER stated that the AVBA met with the contracting officer of VA last summer, and one of Representative Don Young's staff. He related that during this meeting the contracting officer stated that she would not set aside any contracts for service-disabled veteran or veteran owned businesses because she feared the veterans would "jack up the price anyway we want". He said, "She says it's only fair to open up for all competition. This is total blatant disregard of Public Law 109- 461 and basically, a slam in all of our faces that put our lives on hold for the defense and freedoms of this country." He reiterated that the service-disabled veterans are not asking for handouts, but would just like the federal law to be enforced. He concluded by reminding members that when people drive in Anchorage and Fairbanks they see yellow ribbons or stickers on cars that read "Support the Troops." He asked, "When the troops come home, put the weapons down, take the uniforms off, why does the support stop?" He thanked the committee for allowing him to testify. 4:26:23 PM REPRESENTATIVE BUCH thanked him for his testimony. He recalled conversations in his office. He inquired as to who has enforcement authority over the federal law. 4:27:10 PM RIC DAVIDGE, President, Vietnam Veterans of America - Alaska Chapter, stated that he is also a member of the Veteran Business Alliance. He responded to an earlier question by Representative Buch, stating that no one in the agencies is assigned to enforce veterans' preferences. The only tool is a report by the Inspector General. He advised that Alaska's Congressional Delegation has been working for nearly two years to urge federal agencies in Alaska to meet the requirements. He explained that the enforcement authority is discretionary within the agencies, even though the executive order mandated performance requirements for every agency. He emphasized the lack of enforcement is one reason the veterans are requesting oversight hearings in Alaska, and to request commanders who have refused to enforce the laws to participate in the hearings. 4:28:41 PM MR. DAVIDGE opined that the government has not met its legal or moral obligations. He related that he is 75 percent disabled. He focused on his main point, to have the state insist on action. He related that he specifically has asked to have Congressional members hold a joint hearing in Alaska. He recalled during his time as staff to Senator Ted Stevens that similar hearing were held with respect to Native health and housing issues. He opined that procurement officers could be called to testify as to the reasons they are not complying with the federal requirements for service-disabled veteran preferences. He stressed the importance of holding hearings in the state. He concluded that this resolution is in the best interests of the economy of Alaska. He opined that more and more procurement decisions are being made outside Alaska. 4:30:31 PM RUSSELL KELL, State Service Officer, Vietnam Veterans of America - Alaska Chapter, stated that preferences for disabled veterans have existed for years. However, those preferences have been diminished in practice, he stated. Given the significance of the contributions made by disabled veterans to all citizens, any illusion of preference is unacceptable and dishonors the obligation we all have. He urged members to endorse and support HJR 16. 4:31:22 PM MR. KELL, in response to Representative Neuman, answered that in order to be considered a veteran, the person must serve in active duty a minimum of 180 days, and must have an honorable discharge, although there are some exceptions. He referred to AS 38, Section 101 for the specific definition. 4:32:00 PM KARL LERAY, Chairman, Alaska Veterans Business Alliance, on behalf of the Alaska Veterans Business Alliance spoke in support of HJR 16. He explained that it is critical to hold hearings in Alaska to determine why the federal agencies are not complying with state law. He explained his group has contacted several federal agencies, including the U.S. Forest Service, U.S. Army, U.S. Air Force, and Bureau of Land Management. He characterized the response as a "tepid response at best." He pointed out that the U.S. Corp of Engineers is supportive. He said, "We have contracting officers that do not feel the veteran business is of any great importance. It's just that simple." He indicated that the organization wants the legislature to support them, and recognize that it is a disservice to the veteran who has sacrificed himself/herself to serve this country. He said, "Then when ready to come back and start a business and move forward in his dreams, his abilities, and his wants after his service in the country, to basically just give that opportunity, not a handout, just the opportunity. We have the drive. We have the initiative. We've shown it when we wore a uniform. We want to show it as business owners." 4:33:53 PM BARBARA BACHMEIER stated that she is an 80 percent service connected disabled veteran. She stated that she resides and operates a research company in Juneau. She identified that she is affiliated with the Women Serving Women Veterans and the Alaska Military Veterans Political Action Committee. She offered to add to the testimony given for the definition of a service-disabled veteran that would allow him/her to qualify for procurement preferences. She advised that the veteran must be fully active in the conduct of the business. Thus, the instance in which the grandfather was the service connected disabled veteran, but had nothing to do with the business would be unacceptable. The service-disabled veteran must have a key management role, she stated. 4:35:40 PM MS. BACHMEIER stated that she joins other service-disabled veterans, veterans' organizations, and veterans' advocates in testifying today pertaining to passage of HJR 16. She offered her belief that this is an excellent move in the right direction. She suggested her preference for a stronger use than the word "goal" in the original federal legislation, although that word could suffice for service-disabled businesses, if federal agencies turned the three percent goal into a tangible reality. Then service disabled veterans will benefit from the original intent of the legislation, which is not happening currently. She stated that in order for federal agencies doing business to understand the federal requirements, which leaves no room for claims of unawareness, it is important to hold joint oversight hearings in Alaska. Thus, a public review of the contractor's performance with respect to federal regulations is important to have on the public record. She said, "If they have wonderful explanations of why they did not meet that three percent set aside goal, we'd want to examine those." She offered that the veterans would like to see documentation and thoroughly analyze why the federal procurement preference was disregarded. She reiterated that federal agencies doing business in Alaska are required to comply, but they are not doing so. She urged members to pass this resolution. She stated that later she would like the legislature to consider what Florida is considering, which is to have a state set aside for service-disabled veterans. She concluded by stating that she has the highest regard for General Eric Shinseki. She remarked that she served under him while on duty at the Pentagon. She further opined that President Obama could not have selected a more appropriate person to lead the U.S. Department of Veterans Affairs. She referred to page 2, line 31 of HJR 16, and mentioned that the General James B. Peake, M.D. is listed, but he is General Shinseki's predecessor. She asked members to consider making that change. 4:38:48 PM REPRESENTATIVE NEUMAN, after first determining no one else wished to testify, closed public testimony on HJR 16. 4:39:03 PM REPRESENTATIVE NEUMAN announced that HJR 16 would be held over for further discussion. 4:39:37 PM