Legislature(2013 - 2014)CAPITOL 106
03/19/2013 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB130 | |
| SB12 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 130 | TELECONFERENCED | |
| + | SB 12 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 12-PUBLIC PROCUREMENT
8:35:55 AM
CHAIR LYNN announced that the final order of business was SENATE
BILL NO. 12, "An Act relating to state and public entity
procurement, including the State Procurement Code, procurement
preferences, contract awards, the use of small procurement
provisions for certain amounts of leased space, the Alaska
business license requirement for Alaska bidder and other
procurement preferences, the proof of registration of
construction contract bidders and offerors, the establishment
and maintenance of lists of persons who want to provide supplies
or services to the state, state agencies, and state
instrumentalities, electronic bids and proposals, the chief
procurement officer, small procurements, and writings; relating
to the meaning of 'Alaska bidder'; and providing for an
effective date."
8:36:01 AM
SENATOR ANNA FAIRCLOUGH, Alaska State Legislature, as sponsor,
presented SB 12. She indicated that this is the third attempt
to pass through this legislation through both bodies of the
Alaska State Legislature. She said SB 12 is an effort to
streamline Alaska's procurement code, by modifying small
procurement to provide opportunity for rural and urban Alaskans
alike to participate in leases in goods and services or
construction that the state has available. She said the
proposed legislation would clarify when an Alaska business
license is needed and "how that will be counted during the
procurement process." Senator Fairclough noted some of the
changes proposed under SB 12 [which are listed in the upcoming
Sectional Analysis].
8:38:32 AM
REPRESENTATIVE MILLETT expressed gratitude to the bill sponsor
for her third effort in proposing this legislation. She said
she thinks the whole process needs to be streamlined.
8:39:13 AM
REPRESENTATIVE HUGHES thanked the sponsor for her perseverance.
She expressed specific gratitude for the portion of SB 12 that
would allow veterans to use their status, as designated by the
Veterans Administration, thereby avoiding extra expense. She
directed attention to Section 19, on page 7, line [17], which
references a 15 percent preference for employment programs. She
noted that that is higher than "what we're seeing throughout,"
and she asked for an example of an employment program.
8:40:40 AM
VERN JONES, Chief Procurement Officer, Central Office, Division
of General Services, Department of Administration, in response
to Representative Hughes, explained that employment programs
used to be called "sheltered workshops" and refer to
organizations that employ developmentally disabled individuals.
He said the 15 percent preference is not a proposed change; that
is the amount currently in statute.
8:41:29 AM
LAURA PIERRE, Staff, Senator Anna Fairclough, Alaska State
Legislature, on behalf of Senator Fairclough, sponsor, presented
the sectional analysis for SB 12, beginning with Sections 1-13,
which read as follows [original punctuation provided]:
* Section 1: Amends AS 24.55.275
Updates a citation to reflect the renumbering of a
preference.
* Section 2: Amends AS 36.15.050(a)
Amends the local agricultural preference to grant a
seven percent cost preference to the qualifying bid
rather than to the low bid, making this preference
consistent with other procurement preferences.
* Section 3: Amends AS 36.15.050(b)
Amends the local fisheries preference to grant a seven
percent cost preference to the qualifying bid rather
than to the low bid, making this preference consistent
with other procurement preferences.
* Section 4: Amends AS 36.15.050 by adding a new
subsection (h)
Amends the local agricultural and fisheries
preferences to disallow a bidder from being granted
both a local agricultural/fisheries preference and an
Alaska product preference under another statute.
* Section 5: Amends AS 36.30.010
Amends the salary of the Chief Procurement Officer
from range 27 to range 25 due to changes made to the
position, which will no longer serve as Director of
the Division of General Services.
* Section 6: Amends AS 36.30.015(e)
Updates a citation to reflect the renumbering of a
preference.
* Section 7: Amends AS 36.30.015(f)
Updates a citation to reflect the renumbering of a
preference.
* Section 8: Amends AS 36.30.015(h)
Updates a citation to reflect the renumbering of a
preference.
* Section 9: Amends AS 36.30.020
Updates a citation to reflect the renumbering of a
preference.
* Section 10: Amends AS 36.30.030
Updates a citation to reflect the renumbering of a
preference.
* Section 11: Amends AS 36.30.080(f)
Increases the threshold limit for small procurements
of leased space from 3,000 square feet to 7,000 square
feet, consistent with section 18.
* Section 12: Amends AS 36.30.110(b)
Clarifies Alaska business license requirements for
competitive sealed bids and qualification for the
Alaska bidder preference. This change requires bidders
to show proof of their Alaska Business License prior
to award, but requires the license at the time of bid
submission in order to qualify for the Alaska bidder
preference.
* Section 13: Amends AS 36.30.130(a)
Eliminates reference to a procurement officer's use of
vendor lists, reflecting the repeal of the statute
establishing the vendor lists, consistent with section
33.
8:43:58 AM
CHAIR LYNN returned attention to Section [11, on page 5, lines
12-16], which read as follows [original punctuation provided]:
*Sec. 11. AS 36.30.080(f) is amended to read:
(f) When the department is acquiring
leased space of 7,000 [3,000] square feet or less, the
department may procure the leased space using the
procedures for small procurements under AS 36.30.320,
providing public notice is given to prospective
offerors in the market area.
CHAIR LYNN asked for the rationale behind the increase from
3,000 to 7,000.
SENATOR FAIRCLOUGH responded that the state procurement code was
last modified between the late 1980s and early 1990s, which is
when the threshold amendments were set. She said she does not
know why the amount of 3,000 was originally chosen, but related
the 7000 mark and above is where the administration indicated it
has to "take a hard look." She said people in rural communities
were not offering lease spaces within the 3,000 to 7,000 square
foot range, because they did not want to go through the large
procurement process. Changing the number to 7,000 would allow
more people to place properties for rent to the State of Alaska
more easily.
8:45:04 AM
MS. PIERRE reiterated the changes that would be made in Section
13, then presented Sections 14-18 of the Sectional Analysis,
which read as follows [original punctuation provided]:
* Section 14: Amends AS 36.30.170 by repealing and
reenacting
Updates a citation to reflect the renumbering of the
Alaska bidder preference.
* Section 15: Amends AS 36.30.210(b)
Clarifies construction contractor registration
requirements, now explicitly requiring registration
before award of a contract.
* Section 16: Amends AS 36.30.210(e)
Clarifies Alaska business license requirements for
competitive sealed proposals and qualification for the
Alaska bidder preference using language consistent
with that used in section 12.
* Section 17: Amends AS 36.30 by adding a new section
36.30.290
Adds a new section allowing an agency to accept
electronic bids and proposals.
* Section 18: Amends AS 36.30.320(a)
Increases the threshold under which a state agency may
use informal procurement process to $100,000 for goods
and professional services, to $200,000 for
construction, and 7,000 square feet for lease of
space.
8:46:39 AM
REPRESENTATIVE MILLETT returned to Section 17 and asked what the
form of confirmation is for receiving an electronic bid.
8:47:17 AM
MR. JONES answered that statute does not dictate a form of
proof; however, the department is currently in the process of
developing an automated procurement system, called the
Integrated Resource Information System (IRIS), which will have
well-documented protocols in place.
REPRESENTATIVE MILLETT explained that she does not want the
State of Alaska to end up in a law suit because it did not
receive a facsimile or electronic transmission.
SENATOR FAIRCLOUGH presented Section 19 of the Sectional
Analysis, which read as follows [original punctuation provided]:
* Section 19: Amends AS 36.30 by adding a new section
36.30.321
Adds a new section consolidating the Alaska bidder
preference, Alaska veterans' preference, and other
preferences formerly at AS 36.30.170(b). This section
also simplifies the qualification for the disability
and employment program preferences, eliminates the
seldom used employers of people with disabilities
preference, and excludes real estate leases from
application of procurement preferences.
8:48:50 AM
MS. PIERRE presented Sections 20-23 of the Sectional Analysis,
which read as follows [original punctuation provided]:
* Section 20: Amends AS 36.30.322(a)
Modifies the use of local forest products statute to
grant a seven percent cost preference to the
qualifying bid rather than to the low bid, making this
preference consistent with other preferences.
* Section 21: Amends AS 36.30.336 by repealing and
reenacting
Clarifies which preferences are cumulative and which
may not be combined. (example: bidders cannot claim
both an employment program preference and a disabled
bidder preference)
* Section 22: Amends AS 36.30.655
Eliminates reference to the removal of debarred or
suspended persons from vendor lists, reflecting the
repeal of the statute establishing the vendor lists,
consistent with section 33.
* Section 23: Amends AS 36.30.990 by adding a new
paragraph
Moves the definition for "Alaska bidder" (formerly
contained in 36.30.170(b)) and adds new definitions
for "in writing" and "written" to include information
in electronic form.
8:50:06 AM
REPRESENTATIVE MILLETT asked if a person who lapses from his/her
Alaska bidder's license is removed from the bidders' list.
SENATOR FAIRCLOUGH responded, "We're eliminating the bidders'
list."
8:50:28 AM
MS. PIERRE presented Sections 24-28 - the remainder of the
Sectional Analysis - which read as follows [original punctuation
provided]:
* Section 24: Amends AS 36.90.049(a)
Updates a citation to reflect the renumbering of a
preference.
* Section 25: Amends AS 38.35.017(a)
Updates a citation to reflect the renumbering of a
preference.
* Section 26: Repeals AS 36.30.050, which established
the vendor lists, repeals AS 36.30.175, which
established the veteran preference, because it has
been relocated to AS 36.30.321(f), repeals AS
36.30.250(b), because competitive sealed proposals
preference application language is now included in
section 19 (AS 36.30.321), and repeals AS 36.30.335
because language outlining application of certain
preferences is now included in section 21 (AS
36.30.336).
* Section 27: Amends the uncodified law of the State
of Alaska
Clarifies the application of this bill to pending
solicitations during the transition period.
* Section 28: Effective Date
This bill is effective immediately
MS. PIERRE, while addressing Section 27, offered her
understanding that "the legislation allows them to communicate
with the department and ... come to an agreement on whether they
would like to stick with what they signed as an original
contract before this bill goes into effect or have the option to
take advantage of some of the preferences under this."
8:52:06 AM
REPRESENTATIVE KELLER, regarding the issue of preferences that
may or may not be cumulative, said he would like to "get a feel
for the kind of dynamics that are going on there."
8:52:44 AM
SENATOR FAIRCLOUGH noted that the University of Alaska, the
Alaska Municipal League (AML), and the Alaska State Chamber, and
others groups, are supportive of the changes in SB 12. She said
no one has testified or contacted her office in opposition to SB
12. She relayed that in the first year, she carried the bill,
she tried to eliminate an "offers preference," which existed in
regulation, and there was public outcry against that
elimination. She said she still believes it should be
eliminated, but it has not been included in "this package." She
continued as follows:
The only other person who has contacted us saying
anything negative about anything contained in all six
years had to do with the lease space rental, where the
administration advised us that the employers of people
with disabilities credit was being used differently
than the legislature had intended, and that only one
or two people were benefiting inside a family
environment versus what ... the legislature had
actually hoped to accomplish, and that was employing
many people with disabilities.
SENATOR FAIRCLOUGH deferred to Mr. Jones to discuss how credit
can be combined, how that may have been a challenge in the past,
and how the intent of the proposed legislation is to explicitly
outline this issue in statute.
8:54:29 AM
MR. JONES said the proposed legislation clarifies that
preferences cannot be duplicated. For example, a fisheries or
agricultural product preference and an Alaska product preference
cannot be duplicated, because "those two preferences are
intended to benefit the same group of products."
CHAIR LYNN said, "So, you choose your preferences."
MR. JONES said that is correct.
8:55:26 AM
CHAIR LYNN, after ascertaining there was no one else who wished
to testify, closed public testimony.
8:55:41 AM
REPRESENTATIVE MILLETT said SB 12 is "five years in coming," and
she cannot wait to pass it.
8:55:50 AM
REPRESENTATIVE ISAACSON indicated support of the proposed
legislation. He recollected working in municipal government in
the past, and trying to effect changes in the procurement codes.
He indicated that the proposed legislation would "peel back"
state overreach and provide more opportunity for Alaskans. He
spoke of the help "our constitution" gives in creating balances,
which make market economics work, and he said he thinks the
proposed legislation "goes into that line of thinking" by
"equalizing things so that Alaskans have opportunity."
8:57:23 AM
REPRESENTATIVE GATTIS stated, "This is one of the reasons that
we came to Juneau, to make less legislation and make it better."
She stated her support of SB 12. She said many of her
constituents are veterans, and she referred to the language in
the bill, previously mentioned by [Representative Hughes], which
addresses veterans.
8:58:17 AM
REPRESENTATIVE KELLER moved to report SB 12 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, SB 12 was reported out of the
House State Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 HB0130A.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 02 HB 130 Jay Hammond Day Sponsor Statement.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 03 HB 130 Hammond timeline.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 04 HB 130 Letter from Representative Hugh Malone regarding the passage of PFD Legislation.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 05 HB130 Fiscal Note 3-15-13.php.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 06 HB130-DOA-DGS-3-15-13.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 07 HB 130 Hammond slides.pdf |
HSTA 3/19/2013 8:00:00 AM |
HB 130 |
| 01 SB 12 v.N.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 02 SB 12 Sponsor Statement.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 03 SB 12 Fiscal Note DOA.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 04 SB 12 Sectional Analysis.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 05 SB 12 AML Letter of Support.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 06 SB 12 State Chamber Letter of Support.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |
| 07 SB 12 University Letter of Support.pdf |
HSTA 3/19/2013 8:00:00 AM |
SB 12 |