Legislature(2007 - 2008)CAPITOL 106

03/13/2008 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 19 OPPOSE FEDERAL ID REQUIREMENTS TELECONFERENCED
Moved CSHJR 19(STA) Out of Committee
*+ HJR 38 ISRAEL 60TH ANNIVERSARY TELECONFERENCED
Moved CSHJR 38(STA) Out of Committee
*+ HJR 37 CONST AM: SEC. OF STATE REFERENCES TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 406 COMPETITIVE BIDDING FOR BALLOT PREP TELECONFERENCED
Moved CSHB 406(STA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 13, 2008                                                                                         
                           8:07 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Roses, Vice Chair                                                                                            
Representative John Coghill                                                                                                     
Representative Craig Johnson                                                                                                    
Representative Andrea Doll                                                                                                      
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative Kyle Johansen                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 406                                                                                                              
"An Act relating to a requirement for competitive bidding on                                                                    
contracts for the preparation of election ballots."                                                                             
                                                                                                                                
     - MOVED CSHB 406(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 19                                                                                                   
Relating to opposition to the Real ID Act of 2005.                                                                              
                                                                                                                                
     - MOVED CSHJR 19(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 38                                                                                                   
Recognizing the State of Israel on the 60th anniversary of its                                                                  
founding.                                                                                                                       
                                                                                                                                
     - MOVED CSHJR 38(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 37                                                                                                   
Proposing amendments to  the Constitution of the  State of Alaska                                                               
to  correct obsolete  references to  the office  of secretary  of                                                               
state  by substituting  references  to the  office of  lieutenant                                                               
governor  and to  eliminate personal  pronoun  references in  the                                                               
sections proposed to be amended.                                                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 406                                                                                                                  
SHORT TITLE: CONTRACTS FOR PREPARATION OF BALLOTS                                                                               
SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH                                                                                        
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       STA, FIN                                                                                               
03/04/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/04/08       (H)       Scheduled But Not Heard                                                                                
03/06/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/06/08       (H)       Heard & Held                                                                                           
03/06/08       (H)       MINUTE(STA)                                                                                            
03/11/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/11/08       (H)       Heard & Held                                                                                           
03/11/08       (H)       MINUTE(STA)                                                                                            
03/13/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HJR 19                                                                                                                  
SHORT TITLE: OPPOSE FEDERAL ID REQUIREMENTS                                                                                     
SPONSOR(s): REPRESENTATIVE(s) COGHILL                                                                                           
                                                                                                                                
04/13/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/07       (H)       STA                                                                                                    
03/13/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HJR 38                                                                                                                  
SHORT TITLE: ISRAEL 60TH ANNIVERSARY                                                                                            
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
03/11/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/08       (H)       STA                                                                                                    
03/13/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE ANNA FAIRCLOUGH                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor of HB 406, reviewed the                                                                 
changes made in Version E.                                                                                                      
                                                                                                                                
GAIL FENUMIAI, Director                                                                                                         
Division of Elections                                                                                                           
Office of the Lieutenant Governor                                                                                               
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Offered  information  regarding a  printer                                                             
certification process during the hearing on HB 406.                                                                             
                                                                                                                                
VERN JONES, Chief Procurement Officer                                                                                           
Division of General Services                                                                                                    
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information related to HB 406.                                                                  
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
Representative John Coghill                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Offered a more in depth  explanation of HJR
19 on behalf of Representative Coghill, prime sponsor.                                                                          
                                                                                                                                
BRODY ANDERSON, Staff                                                                                                           
Representative Scott Kawasaki                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Offered a  perspective on HJR 19  on behalf                                                             
of Representative Kawasaki, co-sponsor.                                                                                         
                                                                                                                                
CHRISTOPHER CLARK, Staff                                                                                                        
Representative John Harris                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented HJR  38 on  behalf of  the House                                                             
State Affairs Standing Committee, sponsor.                                                                                      
                                                                                                                                
KEVIN BROOKS, Deputy Commissioner                                                                                               
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Outlined the work  that has been going on in                                                             
the department in relation to the  Real ID Act during the hearing                                                               
on HJR 19.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
VICE  CHAIR BOB  ROSES called  the House  State Affairs  Standing                                                             
Committee  meeting  to  order at  8:07:15  AM.    Representatives                                                             
Coghill, Johnson,  Doll, and  Roses were present  at the  call to                                                               
order.   Representative Gruenberg arrived  as the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
HB 406-COMPETITIVE BIDDING FOR BALLOT PREP                                                                                    
                                                                                                                                
8:07:54 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES  announced that the first order  of business was                                                               
HOUSE  BILL  NO. 406,  "An  Act  relating  to a  requirement  for                                                               
competitive bidding on contracts  for the preparation of election                                                               
ballots."                                                                                                                       
                                                                                                                                
[Before the  committee, adopted  as a work  draft on  3/6/08, was                                                               
the  committee  substitute  (CS), Version  25-LS1487\C,  Bullard,                                                               
2/28/08.]                                                                                                                       
                                                                                                                                
8:08:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  moved to  adopt the  committee substitute                                                               
(CS)  for HB  406, Version  25-LS1487\E, Bullard,  3/11/08, as  a                                                               
work draft.   There being no objection, Version E  was before the                                                               
committee.                                                                                                                      
                                                                                                                                
8:08:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ANNA  FAIRCLOUGH,   Alaska  State   Legislature,                                                               
reviewed  the changes  incorporated into  Version E.   She  noted                                                               
that  after  the  prior  bill  hearing,  she  had  discussed  the                                                               
concerns of the  committee with [Gail Fenumiai],  the director of                                                               
the Division of Elections, and  Vern Jones, the chief procurement                                                               
officer for  the Division  of General  Services, and  she offered                                                               
her  understanding that  there is  now concurrence  regarding the                                                               
issues of timing and the  exclusion of the ballot bidding process                                                               
outside of the procurement code.                                                                                                
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH reviewed  that Representative Coghill's                                                               
concern  had been  that following  the procurement  procedure, in                                                               
relation to ballots,  would be an arduous  process, especially in                                                               
terms  of special  elections.   She reviewed  that Representative                                                               
Doll  wanted  to  know  if  there would  be  an  additional  cost                                                               
involved in doing a request for  proposal (RFP), and she said the                                                               
director  of the  Division of  Elections thinks  since Version  E                                                               
would allow  a competitive bid  process under a  bidder proposal,                                                               
there  would  be  no  increase  in  fiscal  obligations  for  the                                                               
division.                                                                                                                       
                                                                                                                                
8:10:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH,  regarding the  certification process,                                                               
said she has not heard  back from Premier Elections [Solutions] -                                                               
formerly Diebold [Election Systems]  ("Diebold"), and before that                                                               
Global Election  Systems; however,  she said  it is  rumored that                                                               
when  the  original developer  of  the  hardware had  proprietary                                                               
provider   options   on   the   balloting,   it   developed   the                                                               
certification process so  that no one else  could compete against                                                               
those who were  building and selling the hardware.   She deferred                                                               
to Ms. Fenumiai for an update on that matter.                                                                                   
                                                                                                                                
8:10:49 AM                                                                                                                    
                                                                                                                                
GAIL  FENUMIAI, Director,  Division of  Elections, Office  of the                                                               
Lieutenant Governor,  said she spoke  with a  representative from                                                               
Premier  Election  [Solutions]  about the  printer  certification                                                               
process and  was informed that  it was  started as a  courtesy to                                                               
customers.     When  optical  scan  technology   was  brand  new,                                                               
customers were concerned  about printers being able  to print the                                                               
ballots properly  so that they would  be able to be  fed into the                                                               
AccuVote units  and read properly.   However, the  company became                                                               
too big  and it was no  longer economically feasible for  them to                                                               
continue  that  process,  and  it  was  not  something  that  was                                                               
required of Premier Election  [Solutions].  Additionally, Premier                                                               
Election Solutions  purchased a  printing company  and determined                                                               
it  had a  conflict of  interest.   That, she  concluded, is  the                                                               
reason that the certification of printers ceased.                                                                               
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  added that  Alaska state law  does not                                                               
require  the  certification;  it  is  a  quality  measure.    She                                                               
indicated that one of the reasons  that she chose the RFP process                                                               
versus the  bid process in  Version E  was based on  testimony of                                                               
"the  current  provider" that  the  points  of utmost  importance                                                               
would be outlined through the RFP process.                                                                                      
                                                                                                                                
MS.  FENUMIAI  confirmed that's  correct.    She added  that  the                                                               
proposal  process would  allow the  division to  consider factors                                                               
other than just the lowest bid.                                                                                                 
                                                                                                                                
8:12:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  reviewed that  Representative Johnson,                                                               
at  the last  bill  hearing,  had suggested  five  years for  the                                                               
length  of  time  an  individual printer  would  be  awarded  the                                                               
state's contract for ballot printing;  however, she said one year                                                               
is better,  because the  state can  hold the  printer accountable                                                               
for performing in  a timely manner, as well as  for producing the                                                               
quality work  necessary.  Furthermore,  she said the  Division of                                                               
Elections would offer  the bid in an "off year"  to ensure that a                                                               
printer can perform before the general election year arrives.                                                                   
                                                                                                                                
8:13:47 AM                                                                                                                    
                                                                                                                                
MS. FENUMIAI confirmed that's correct.                                                                                          
                                                                                                                                
8:13:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH,  in  response   to  a  question  from                                                               
Representative Doll,  said the division would  ensure the quality                                                               
of the ballot.  She spoke  of printers that are showing what they                                                               
can provide, noting that Anchorage  has a competitive bid process                                                               
already.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   DOLL   remarked,   "You   can   follow   written                                                               
specifications, but unless  you go through a testing,  it may not                                                               
work."                                                                                                                          
                                                                                                                                
8:15:56 AM                                                                                                                    
                                                                                                                                
MS.  FENUMIAI offered  her understanding  that under  the current                                                               
process, as the printer runs  official ballots, those ballots are                                                               
run through a testing process  to make certain the "timing" marks                                                               
are  in the  correct places  and that  the folding  marks do  not                                                               
infringe  on them.    She  said the  division  would ensure  that                                                               
testing procedures were in place for that.                                                                                      
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH clarified  that  the one-year  process                                                               
would include multiple years of  renewal options to be determined                                                               
at the proposal.                                                                                                                
                                                                                                                                
8:16:46 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  ROSES asked if the  option would be designed  only as                                                               
one exercised  by the state or  if it would also  be exercised by                                                               
the printer.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH responded  it would  be determined  in                                                               
the  RFP whether  the printer  wanted  to "be  under the  state's                                                               
specification."                                                                                                                 
                                                                                                                                
8:17:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  asked the bill  sponsor to clarify  what the                                                               
new language is on page 4, [lines 2-5], which read as follows:                                                                  
                                                                                                                                
          Sec. 15.15.031 Contracts for the preparation of                                                                     
     election  ballots. (a)  Except  as provided  in (b)  of                                                                  
     this section,  the director shall award  a contract for                                                                    
     the  preparation  of  election   ballots  to  the  most                                                                    
     advantageous  offeror whose  proposal  conforms in  all                                                                    
     material respects to the  requirements and criteria set                                                                    
     out in the request for proposals.                                                                                          
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said the  new language is "advantageous                                                               
offeror", which is a term of art in procurement code.                                                                           
                                                                                                                                
8:18:05 AM                                                                                                                    
                                                                                                                                
VERN  JONES,  Chief  Procurement  Officer,  Division  of  General                                                               
Services,   Department   of    Administration,   explained   that                                                               
"advantageous"  is  used  to  mean   "the  proposal  deemed  most                                                               
beneficial  to  the  state  through  evaluation  criteria  that's                                                               
published in the RFP."                                                                                                          
                                                                                                                                
8:18:57 AM                                                                                                                    
                                                                                                                                
MR. JONES, in  response to Vice Chair Roses,  confirmed that when                                                               
HB  406  first  surfaced,  it   proposed  a  low  bid  takes  all                                                               
situation,  which caused  him  concern  regarding ambiguities  of                                                               
timing  in  relation to  procurement  code  requirements for  bid                                                               
circulation time,  protest period,  and official  written notice.                                                               
He said he  thinks the changes made in Version  E address some of                                                               
those concerns.   For example, Version E would allow  a number of                                                               
factors  to be  listed in  addition to  price so  that the  state                                                               
could look for a printer that  would produce the best quality and                                                               
value.  He  said, "I am also convinced that  given the timing and                                                               
the plan  to have term  contracts in lieu of  individual, yearly,                                                               
or election-cycle contracts, ... the  division will be able to go                                                               
out with enough  time, get a contractor on board,  and meet their                                                               
time frame."                                                                                                                    
                                                                                                                                
8:20:48 AM                                                                                                                    
                                                                                                                                
 REPRESENTATIVE FAIRCLOUGH noted that  the term, "Alaska product"                                                               
is  defined in  Version E,  beginning  on page  4, line  28.   In                                                               
response  to  a  question   from  Representative  Gruenberg,  she                                                               
referred to  language [on page  4, within lines 6-8],  which read                                                               
as follows:                                                                                                                     
                                                                                                                                
          (b) The director shall award a contract based on                                                                      
     solicited   proposals   to   the   most   advantageous,                                                                    
     responsive,  and responsible  offeror  after an  Alaska                                                                    
     offeror  preference  of  five  percent  and  an  Alaska                                                                    
     product preference of seven percent.                                                                                       
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH stated  her intent  that Alaskans  get                                                               
awarded  the contract.    However, she  noted  that currently  in                                                               
Alaska  there is  only one  printer  that has  an Alaska  product                                                               
certificate, and  it is not  the current  printer.  She  said she                                                               
was assured  by Kevin Fraley,  who is the current  printer, "that                                                               
he  had been  an  Alaska  product provider  before  and had  that                                                               
certificate."   Representative  Fairclough said  the certificates                                                               
are  issued, at  no charge,  by the  Department of  Commerce, and                                                               
established a number ranking for  how much of a printer's service                                                               
is made  in Alaska.   She reiterated that  she is trying  to make                                                               
certain  Alaska contractors  are awarded  printing bids  from the                                                               
State  of Alaska.   She  added, "So,  that's why  I support  that                                                               
preferential in this product."   She suggested Mr. Jones may have                                                               
a differing opinion on the subject.                                                                                             
                                                                                                                                
8:23:04 AM                                                                                                                    
                                                                                                                                
MR. JONES  said he  supports the sponsor's  intent to  ensure the                                                               
job goes to an Alaskan firm.  He  said he thinks it almost has to                                                               
because of  the logistics involved,  and he mentioned  that there                                                               
is a  lot of shipping  to many sites.   He related that  his only                                                               
reservation with  an Alaska  product preference  is that,  as the                                                               
sponsor noted,  there is currently  only one vendor who  has that                                                               
certificate;  all  the others  living  in  Alaska and  presumably                                                               
qualified would certainly qualify to  obtain that preference.  He                                                               
explained his concern has to do  with the timing it takes for the                                                               
Department of  Commerce to qualify  a firm and  put it on  a list                                                               
that is  only published twice  a year.   A new printer  may start                                                               
work in the  state and miss the publishing cycle  and not qualify                                                               
in time for preference.  The  result, he indicated, could be that                                                               
one Alaskan firm could be  distinguished over another.  Mr. Jones                                                               
suggested  the committee  consider  "eliminating that  preference                                                               
and  simply  increasing  the  Alaska   bidder  preference."    He                                                               
concluded,  "It would  have  the same  effect,  and the  printers                                                               
wouldn't have to  go through this ... process, which  I guess, in                                                               
my  opinion, if  you're in  Alaska, if  you're printing,  I don't                                                               
know what ... purpose that serves."                                                                                             
                                                                                                                                
8:25:03 AM                                                                                                                    
                                                                                                                                
MR.  JONES,  in  response  to   a  question  from  Representative                                                               
Gruenberg, said he  knows of no legal opinions  about the product                                                               
preference, whereas he  said he thinks the  bidder preference has                                                               
been  vetted several  times and  has survived  the lawsuits.   In                                                               
response to  a follow-up question from  Representative Gruenberg,                                                               
he  said  the  "offeror"  would  be  the  person  who  submits  a                                                               
proposal.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG  remarked that the aforementioned  5 and                                                               
7  percent  are so  substantial,  the  result  may be  to  "knock                                                               
anybody else  out," particularly if  there is only one  firm that                                                               
qualifies.  He  expressed concern about whether, in  the event of                                                               
a  lawsuit,  an  administrative  law judge  would  consider  "the                                                               
constitutionality of this" or whether "it  would have to go up on                                                               
an appeal  to the [Alaska]  Superior Court and then  the [Alaska]                                                               
Supreme Court,"  which could slow  the process  down considerably                                                               
and also increase the cost.  He  added, "... I don't know that we                                                               
want to push the envelope, at least right away on this."                                                                        
                                                                                                                                
8:26:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH said "Alaska  product" is defined in AS                                                               
36.30.338.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG pointed  out that Version E  refers to a                                                               
definition  of "Alaska  product"  [from  AS 36.30.338(2)],  which                                                               
differs  from the  definition of  "Alaska product"  found in  [AS                                                               
36.30.338(1)], as follows:                                                                                                      
                                                                                                                                
          (1) "Alaska product" means a product of which not                                                                     
     less than  25 percent  of the  value, as  determined in                                                                    
     accordance   with   regulations    adopted   under   AS                                                                    
     36.30.332(a),  has  been   added  by  manufacturing  or                                                                    
     production in the state;                                                                                                   
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH stated  her disagreement,  adding that                                                               
the [statute] referenced  on line 30 of Version E  refers to that                                                               
subsection.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  highlighted that [the statute]  is only                                                               
[referenced]  in  [subparagraph] (A).    "Then  you have  to  add                                                               
[subparagraphs]  (B) and  (C).    Those are  not  in the  current                                                               
definition as I read it," he said.                                                                                              
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH  clarified,   "We   did  not   define                                                               
'product'  or   'recycled  Alaska  product';  that's   under  the                                                               
certification  that if  anyone got  the  certification that  they                                                               
would go through."                                                                                                              
                                                                                                                                
REPRESENTATIVE   GRUENBERG   said    the   terms   "produced   or                                                               
manufactured"  are  defined in  the  current  statute.   He  then                                                               
pointed  out  that the  statute  referenced,  AS 36.30.338,  only                                                               
refers  to  [paragraph]  (2).   He  suggested  distributing  this                                                               
statute to  the committee members  as he  read it as  a different                                                               
definition.  Paragraph (2) of AS 36.30.338 read:                                                                                
                                                                                                                                
          (2) "produced or manufactured" means processing,                                                                      
     developing, or  making an item  into a new item  with a                                                                    
     distinct  character  and  use through  the  application                                                                    
     within the  state of materials, labor,  skill, or other                                                                    
     services;                                                                                                                  
                                                                                                                                
8:29:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  Legislative  Legal and  Research                                                               
Services prepared the  language "to be Alaska  product that would                                                               
fall  under the  certification under  the Department  of Commerce                                                               
..., and  if it  doesn't meet that  I'm happy to  amend it  to do                                                               
that."                                                                                                                          
                                                                                                                                
REPRESENTATIVE   GRUENBERG   reiterated   that   the   definition                                                               
presented   in  Version   E  is   different  than   the  existing                                                               
definition.  He asked Mr. Jones if he concurred.                                                                                
                                                                                                                                
MR. JONES answered that he  wasn't sure since the bill references                                                               
that statute.                                                                                                                   
                                                                                                                                
MR. JONES related that although  there are two preferences, which                                                               
total 12 percent, the way the RFP  works, cost is not going to be                                                               
100 percent.   He said the  preferences act on cost.   He stated,                                                               
"So,  for example,  if  the  evaluation factor  for  cost was  50                                                               
percent,  these preferences  would,  in essence,  equate  to a  6                                                               
percent advantage to an Alaskan firm."                                                                                          
                                                                                                                                
8:30:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON said a printer  who is chosen by the state                                                               
would  have  a  considerable   investment  in  printing  ballots;                                                               
therefore, he  recommended the contract  term be made as  long as                                                               
possible.    Doing so,  he  said,  would  save money  and  ensure                                                               
quality.                                                                                                                        
                                                                                                                                
8:33:05 AM                                                                                                                    
                                                                                                                                
MR. JONES,  in response to  a question from  Representative Doll,                                                               
explained  that the  term "advantageous"  is a  term of  art used                                                               
across   the  country   and  probably   listed  in   Black's  Law                                                             
Dictionary.   He  noted that  "responsive" and  "responsible" are                                                             
procurement terms either defined in statute or regulation.                                                                      
                                                                                                                                
8:35:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  for the  definition of  the word                                                               
"staffed" on page 4, line 14.  He  said even if a business was in                                                               
the state, its staff may not be.                                                                                                
                                                                                                                                
8:36:01 AM                                                                                                                    
                                                                                                                                
MR. JONES replied that the  phrasing is "from the existing Alaska                                                               
bidder preference  in statute," and  is interpreted to  mean that                                                               
the firm  has a  physical presence in  the state,  with employees                                                               
doing the work on  site.  It does not include  a person renting a                                                               
suite  and Post  Office box  and  having phones  answered out  of                                                               
state.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG   said  he  wants  to   establish  that                                                               
["staffed"]  and  "advantageous"  are terms  that,  although  not                                                               
familiar  to everyone  in  the legislature,  are  defined by  the                                                               
agency's common law.                                                                                                            
                                                                                                                                
MR. JONES responded, "We've certainly  had many numerous protests                                                               
and appeals  and lawsuits  using the RFP  with that  language ...                                                               
contained in it."                                                                                                               
                                                                                                                                
8:38:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said  he   does  not  want  any  legal                                                               
problems  regarding  [the  definition  of  "Alaska  offeror"  and                                                               
"Alaska product"], on page 4, line 9,.                                                                                          
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH said  she  would be  happy  to make  a                                                               
request of  Legislative Legal and  Research Services  to "clarify                                                               
the intent of the difference in the language."                                                                                  
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said  he   would  leave  that  to  the                                                               
discretion  of the  bill sponsor.   He  said he  does not  have a                                                               
problem with moving the bill.                                                                                                   
                                                                                                                                
8:39:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to report the  committee substitute                                                               
(CS) for  HB 406, Version  25-LS1487|E, Bullard, 3/11/08,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  406(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     
                                                                                                                                
HJR 19-OPPOSE FEDERAL ID REQUIREMENTS                                                                                         
                                                                                                                                
8:40:04 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  ROSES announced that  the next order of  business was                                                               
HOUSE  JOINT RESOLUTION  NO. 19,  Relating to  opposition to  the                                                               
Real ID Act of 2005.                                                                                                            
                                                                                                                                
8:40:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to  adopt  the proposed  committee                                                               
substitute  (CS)  for  HJR 19,  Version  25-LS0844\E,  Luckhaupt,                                                               
2/21/08, as a work draft.   [No objection was stated, and Version                                                               
E was treated as a work draft before committee.]                                                                                
                                                                                                                                
REPRESENTATIVE COGHILL offered an  initial introduction of HJR 19                                                               
as prime sponsor.  He said  since 2005, the issue surrounding the                                                               
Real  ID Act  has  become  a question  of  balancing the  state's                                                               
responsibility  to verify  people's  identification  (ID) or  the                                                               
federal government mandating  how the state must do so.   He said                                                               
he does not  support an international ID card.   The original Act                                                               
passed in an appropriation bill.   Currently, it looks like there                                                               
will be a division between  the federal government and the state.                                                               
He said, "If the 'feds' continue  going down the road, ... unless                                                               
we accept their ID requirements,  we can't get into their federal                                                               
buildings."   He said  he does  not think  the people  of America                                                               
should be divided  up in that manner.  He  indicated that Article                                                               
10 of the  Constitution [of the State of Alaska]  "requires us to                                                               
say we don't think that's the best  way to go about it," and that                                                               
is  the purpose  of HJR  19.   The resolution  tells the  federal                                                               
government that  Alaska is considering  the Real ID Act,  but may                                                               
not implement it exactly as written.                                                                                            
                                                                                                                                
8:44:06 AM                                                                                                                    
                                                                                                                                
RYNNIEVA MOSS,  Staff, Representative John Coghill,  Alaska State                                                               
Legislature, offered  a more  in depth explanation  of HJR  19 on                                                               
behalf of Representative  Coghill, prime sponsor.   She said, "If                                                               
powers   aren't  delegated   to  the   U.S.  Government   by  the                                                               
Constitution, those  are reserved to  the state and  the people."                                                               
She said  she thinks the  term, "the  people," is the  issue that                                                               
Representative Coghill is trying to bring forth.                                                                                
                                                                                                                                
MS. MOSS explained  that the Real ID Act would  not punish states                                                               
for  noncompliance  by withdrawing  funds,  as  normal; it  would                                                               
punish the  people of the  state by  not allowing them  access to                                                               
airports  for travel  or to  federal facilities.   She  indicated                                                               
that May  2008 is the date  by which states must  comply with the                                                               
Real ID Act, and she reminded  the committee that states have had                                                               
the   administrative   authority   for  drivers'   licenses   for                                                               
approximately 100 years.  She  summarized that the reason for HJR
19 is that [the Real ID  Act] is an unfunded mandate, is contrary                                                               
to  the  Tenth Amendment,  and  would  punish citizens  "for  the                                                               
actions of a government."                                                                                                       
                                                                                                                                
8:46:16 AM                                                                                                                    
                                                                                                                                
BRODY  ANDERSON,  Staff,  Representative Scott  Kawasaki,  Alaska                                                               
State Legislature, offered  a perspective on HJR 19  on behalf of                                                               
Representative  Kawasaki,  co-sponsor.     He  stated  that  [the                                                               
Department  of]  Homeland  Security overlooked  the  consequences                                                               
that Alaska and Hawaii would  face regarding noncompliance of the                                                               
Real  ID Act  when  it  related that  the  Act  would not  impede                                                               
people's travel between states but  would simply not allow people                                                               
to fly  on federally  regulated commercial  airlines.   Without a                                                               
Real ID card  or passport, people in Alaska  would be essentially                                                               
landlocked, Mr. Anderson said.                                                                                                  
                                                                                                                                
8:47:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOLL  asked  what  the  impact  of  the  proposed                                                               
resolution would be.                                                                                                            
                                                                                                                                
8:48:19 AM                                                                                                                    
                                                                                                                                
MS. MOSS described HJR 19  as "soft ball" compared to resolutions                                                               
that have been passed in some  other states.  In fact, she noted,                                                               
many states have  passed laws into statute that  prohibit the use                                                               
of state  funds to implement the  Real ID Act.   Ms. Moss relayed                                                               
that the sponsor of the  resolution realizes that changes must be                                                               
made in response to changing times;  however, he wants to get the                                                               
message across  that the  federal government  needs to  work with                                                               
states  to  make the  country  safer  -  not order  states  under                                                               
unfunded mandates to "do things  that are contrary to what states                                                               
have  been   doing  for  100   years."    She   recollected  when                                                               
Representative  Coghill   first  came   to  the   legislature  he                                                               
introduced a bill  that would remove the  requirement that people                                                               
include  their social  security  numbers on  hunting and  fishing                                                               
licenses.   At  the  time, Representative  Coghill  was told  the                                                               
state would lose  federal dollars if it  passed that legislation.                                                               
In  researching  the  bill, she  said,  Representative  Coghill's                                                               
office found  that two  other states  had already  passed similar                                                               
legislation and  had lost no  federal dollars.  Ms.  Moss offered                                                               
her  understanding  that  Alaska  has not  lost  a  single  penny                                                               
because of that legislation.                                                                                                    
                                                                                                                                
8:49:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG recollected  that extensive hearings had                                                               
taken  place during  the Twenty-Fourth  Alaska State  Legislature                                                               
related to  the implementation of the  Real ID Act.   Involved in                                                               
those hearings  was the  then director of  the Division  of Motor                                                               
Vehicles (DMV) who no longer serves  in that capacity.  He said a                                                               
law suit was  brought about because "they  published a regulation                                                               
that  implemented the  Real ID  without  any statutory  authority                                                               
whatsoever."   The  [law suit]  was subsequently  dismissed on  a                                                               
technicality,    which   Representative    Gruenberg   said    is                                                               
unfortunate.   He opined that  that regulation "is  still hanging                                                               
out  there, ...  entirely illegally."   He  said this  is a  very                                                               
serious  liability that  the  state faces.    He offered  further                                                               
details, and  said he assumes the  sponsor would not like  any of                                                               
this additional  information added  to what  he called,  "a naked                                                               
resolution."                                                                                                                    
                                                                                                                                
MS.  MOSS responded  that HJR  19  is geared  toward the  federal                                                               
government  and  its  actions,   but  she  thinks  Representative                                                               
Gruenberg brought up a good point  that needs to be pursued.  She                                                               
confirmed  that  the director  of  DMV,  to which  Representative                                                               
Gruenberg referred, no longer holds  that position, and [the fact                                                               
that  the   resolution  is  still   on  the  books]   "should  be                                                               
corrected."                                                                                                                     
                                                                                                                                
8:52:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to report the  committee substitute                                                               
(CS) for HJR 19, Version  25-LS0844\E, Luckhaupt, 2/21/08, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHJR  19(STA)  was                                                               
reported out of the House State Affairs Standing Committee.                                                                     
                                                                                                                                
[Later in the hearing further testimony on HJR 19 was heard.]                                                                   
                                                                                                                                
HJR 38-ISRAEL 60TH ANNIVERSARY                                                                                                
                                                                                                                                
8:52:58 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  ROSES announced that  the last order of  business was                                                               
HOUSE JOINT  RESOLUTION NO. 38,  Recognizing the State  of Israel                                                               
on the 60th anniversary of its founding.                                                                                        
                                                                                                                                
The committee took an at-ease from 8:53:35 AM to 8:53:54 AM.                                                                
                                                                                                                                
8:53:56 AM                                                                                                                    
                                                                                                                                
CHRISTOPHER  CLARK,  Staff,  Representative John  Harris,  Alaska                                                               
State Legislature, presented HJR 38  on behalf of the House State                                                               
Affairs Standing  Committee, sponsor.   He said May 14,  2008, is                                                               
the sixtieth anniversary of the State  of Israel.  In response to                                                               
a question  from Representative Gruenberg, he  said after talking                                                               
to   several   of  Juneau's   Jewish   community,   one  of   the                                                               
recommendations  he  received  was  to change  "have  shared"  to                                                               
"share"  [on page  2,  lines  14-15], which  would  then read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     WHEREAS the American people share an affinity with the                                                                   
       people of Israel and regard Israel as a strong and                                                                       
     trusted ally;                                                                                                              
                                                                                                                                
MR. CLARK, in response to  Representative Gruenberg, noted that a                                                               
second suggestion had been to add  the name of Secretary of State                                                               
Condoleezza Rice  to the  names of  those to  whom copies  of the                                                               
resolution would be  sent [page 2, line 29, through  page 3, line                                                               
1].                                                                                                                             
                                                                                                                                
8:55:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to adopt Amendment 1, as follows:                                                                
                                                                                                                                
     Page 2, line 14:                                                                                                           
          Delete "have shared"                                                                                                  
          Insert "share"                                                                                                        
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
8:55:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved  to adopt Amendment 2,  to add the                                                               
name of Secretary of State Condoleezza  Rice to the list of those                                                               
receiving copies  of the resolution.   There being  no objection,                                                               
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
8:56:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  report HJR 38,  [as amended],                                                               
out  of  committee  with   individual  recommendations  [and  the                                                               
accompanying  fiscal notes].   There  being  no objection,  CSHJR
38(STA)  was reported  out of  the House  State Affairs  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
HJR 19-OPPOSE FEDERAL ID REQUIREMENTS                                                                                         
                                                                                                                                
8:56:47 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR  ROSES  announced that  although  CSHJR  19(STA)  had                                                               
already  been reported  out  of committee,  he  had overlooked  a                                                               
request to  testify that had  been made  by Kevin Brooks,  and he                                                               
said he would now hear that testimony.                                                                                          
                                                                                                                                
8:57:05 AM                                                                                                                    
                                                                                                                                
KEVIN BROOKS, Deputy  Commissioner, Department of Administration,                                                               
outlined the  work that has  been going  on in the  department in                                                               
relation to the Real ID Act.                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:57:33 AM to 8:58:28 AM.                                                                
                                                                                                                                
8:58:30 AM                                                                                                                    
                                                                                                                                
MR.  BROOKS said  he  does not  dispute the  passage  of HJR  19,                                                               
because the department has "some  very strong concerns about Real                                                               
ID, as well."  Regarding  the aforementioned regulations, he said                                                               
they  are written  out in  nearly 200  pages of  rules.   Some of                                                               
those  rules  are good,  he  said,  and  some Alaska  is  already                                                               
following.   The  concern is  that there  is an  unfunded mandate                                                               
placed  upon  the state,  and  the  department is  attempting  to                                                               
determine the cost to the state for compliance.                                                                                 
                                                                                                                                
MR. BROOKS said the State of  Alaska, along with 44 other states,                                                               
has applied for  and received an extension to December  2009.  He                                                               
said that  does not commit the  state to complying at  the end of                                                               
that extension, but gives the  state time to "analyze those rules                                                               
and see  how they would  impact us."   Mr. Brooks  stated, "There                                                               
are things  that the state  does that arguably are  in compliance                                                               
with the Real  ID Act, but they don't make  us compliant, if that                                                               
distinction is clear."                                                                                                          
                                                                                                                                
MR.  BROOKS mentioned  the  National  Governors' Association  and                                                               
working with  other states in  terms of trying to  be responsible                                                               
in  the state's  approach  to this  matter  while preserving  the                                                               
rights  of Alaska's  citizens.   He  confirmed  the problem  that                                                               
Alaska and  Hawaii would have  in relation to complying  with the                                                               
Real ID Act and attempting to fly out of state.                                                                                 
                                                                                                                                
MR.  BROOKS stated  for  the record  that  the department  passed                                                               
regulations a  couple years  ago, but  those regulations  did not                                                               
implement the Real ID Act.   He said, "We're not compliant today;                                                               
we weren't  when they passed  the regulations."   The regulations                                                               
that  passed, he  noted,  were  the result  of  about a  two-year                                                               
effort to update the DMV  regulations, which had not been updated                                                               
for  over  a decade.    There  were  numerous references  to  the                                                               
Division of Motor  Vehicles when it existed in  the Department of                                                               
Public Safety, for example.   The regulations that the department                                                               
passed  reflected that  the  DMV  was now  in  the Department  of                                                               
Administration,  and  those  regulations updated  the  division's                                                               
rules with  current statute  - not  with any  prospective statute                                                               
that had yet to pass.   Regarding the reference to the former DMV                                                               
director, Mr.  Brooks clarified, "There was  no relationship with                                                               
his  no   longer  working  for   us  in  the  passage   of  those                                                               
regulations."  Mr.  Brooks said the department  believes that the                                                               
regulations were  the result of  a good work  effort by a  lot of                                                               
people  and comprehensive  legal review,  and they  withstood the                                                               
test  of a  lawsuit.   He  said the  department  stands by  those                                                               
regulations today.                                                                                                              
                                                                                                                                
9:02:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG asked:                                                                                                 
                                                                                                                                
     Is it  not true that  they did  not reach the  issue of                                                                    
     the legality  of the regulations in  that lawsuit; that                                                                    
     they dismissed  it, because  the main  plaintiff didn't                                                                    
     have standing?                                                                                                             
                                                                                                                                
MR. BROOKS responded that that is an accurate statement.                                                                        
                                                                                                                                
[Earlier in  the meeting, CSHJR  19(STA) was reported out  of the                                                               
House State Affairs Standing Committee.]                                                                                        
                                                                                                                                
9:03:00 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES made an  announcement pertaining to the calendar                                                               
for the next committee meeting.                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State  Affairs  Standing  Committee   meeting  was  adjourned  at                                                               
9:03:17 AM.                                                                                                                   

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