Legislature(2013 - 2014)SENATE FINANCE 532

02/21/2013 09:30 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 7 CORPORATE INCOME TAX TELECONFERENCED
Heard & Held
+ SB 12 PUBLIC PROCUREMENT TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
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."                                                                     
                                                                                                                                
10:25:38 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  stated that SB  12 was an  attempt to                                                                    
modify the  procurement code and streamline  the procurement                                                                    
processes. She  pointed out that  currently, there  was some                                                                    
ambiguity in  calculating the procurement bids.  She related                                                                    
that  the bill  provided a  specific point  in time  when an                                                                    
Alaska  business  license  was required  and  increased  the                                                                    
threshold  under which  state agencies  may use  an informal                                                                    
procurement  process;  the   threshold  was  increased  from                                                                    
$50,000 to $100,000 for good  and services and from $100,000                                                                    
to $200,000  for construction. The  bill also  increased the                                                                    
small  procurement  leased-space  threshold from  $3,000  to                                                                    
$7,000. She related that the  legislation advanced the state                                                                    
into an  electronic world through which  electronic bids and                                                                    
signatures  would  be  accepted.   The  bill  eliminated  an                                                                    
outdated vendor list and relocated  all the preferences into                                                                    
the same spot  in the Alaska Statutes, as  well as clarified                                                                    
which preferences may be stacked  and which one could not be                                                                    
combined.  The legislation  eliminated  the "employers  with                                                                    
disabilities"  preference,  reduced  the  chief  procurement                                                                    
officer's pay from  a range 27 to a  range 25; collectively,                                                                    
the   changes  streamlined   the  procurement   process  and                                                                    
provided Alaskans a way to  enter and engage in Alaska state                                                                    
service.  She   concluded  that   the  bill   provided  more                                                                    
opportunities for Alaskans, particularly in rural Alaska.                                                                       
                                                                                                                                
VERN  JONES,   CHIEF  PROCUREMENT  OFFICER,   DEPARTMENT  OF                                                                    
ADMINISTRATION,  introduced  himself   for  the  record.  He                                                                    
related that the bill  simplified, modernized, and clarified                                                                    
the procurement process. He pointed  out that increasing the                                                                    
small  procurement threshold  made  it  possible to  conduct                                                                    
more procurements  in a less  formal mode, which  was easier                                                                    
for  smaller businesses,  particularly  in  rural areas.  He                                                                    
stated  that  the  bill  would  particularly  help  building                                                                    
owners  who were  leasing space  to the  state and  that the                                                                    
legislation  simplified  the   preferences.  Currently,  the                                                                    
Division   of  Vocational   Rehab   was   required  to   get                                                                    
verification   from  an   individual's  doctors   to  verify                                                                    
disability status;  the bill would allow  for the acceptance                                                                    
of  third party  qualifications  from entities  such as  the                                                                    
Social    Security   Administration    and   the    Veterans                                                                    
Administration  (VA). He  believed  the bill  was easier  to                                                                    
understand than  the current law  on the  state practitioner                                                                    
side, as well as for  the businesses that were engaging with                                                                    
the state.                                                                                                                      
                                                                                                                                
10:30:31 AM                                                                                                                   
                                                                                                                                
Vice-Chair Fairclough  was prepared  to present  a sectional                                                                    
analysis  of  the  bill, but  preferred  to  take  questions                                                                    
afterwards in respect  for those who were  waiting online to                                                                    
testify.                                                                                                                        
                                                                                                                                
DAVE GLENN, SELF, PALMER  (via teleconference), testified in                                                                    
support of the SB 12  and related that the stated Department                                                                    
of Labor and Workforce  Development (DLWD) did not recognize                                                                    
disability certification from the  VA. He related a personal                                                                    
story about DLWD rejecting a  contract that he had submitted                                                                    
because his  paperwork had  been submitted  from the  VA. He                                                                    
stated   that  the   DLWD's  stance   on   this  issue   was                                                                    
inconsistent  with   everything  else  the  state   did  for                                                                    
disabled veterans.  He shared that his  VA certification was                                                                    
recognized  for  discounted  license  plates,  free  hunting                                                                    
licenses, the  state park and  ferry systems, etc.  He added                                                                    
that DLWD was the only department  in the state that did not                                                                    
recognize disability certification from  the VA. He recalled                                                                    
serving  in the  Vietnam  War and  being  an "Agent  Orange"                                                                    
victim.  He expressed  concerned  for  the troops  returning                                                                    
from duty  in Afghanistan  and pointed out  that he  did not                                                                    
want to see these veterans treated  like he had been when he                                                                    
returned home from Vietnam. He  offered that veterans should                                                                    
not  be  discriminated  against  over  a  technicality,  but                                                                    
should  be afforded  every opportunity  to  get their  lives                                                                    
back in order. He concluded  that the bill eliminated having                                                                    
to satisfy DLWD's requirements of  a whole system of private                                                                    
doctors, expenses, etc.                                                                                                         
                                                                                                                                
MIKE KOSKOVITCH,  SELF, WASILLA (via  teleconference), spoke                                                                    
in support of SB 12  and related his experiences with "Agent                                                                    
Orange." He  believed that  a disability  certification from                                                                    
the  VA  should satisfy  any  requirement  by the  State  of                                                                    
Alaska.  He observed  that veterans  should be  treated with                                                                    
the  dignity and  honor that  they deserved  and should  not                                                                    
have to deal with bureaucratic obstacles.                                                                                       
                                                                                                                                
Co-Chair Meyer CLOSED public TESTIMONY on SB 12.                                                                                
                                                                                                                                
10:35:27 AM                                                                                                                   
                                                                                                                                
SB  12  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Meyer discussed the following meeting's agenda.                                                                        
                                                                                                                                
10:35:55 AM                                                                                                                   

Document Name Date/Time Subjects
SB 7 - DOR 2012 Annual Report - Figure 1.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Letter of Support Chugiak-Eagle River Chamber.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Letter of Support Seward Chamber.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Resolution Greater Wasilla Chamber.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Letter of Support Juneau Chamber.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - FTA Range of St Corp Income Tax Rates 2013.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Letter of Support AK ST Chamber 021113.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Sponsor Statement.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 7 - Support LRS Report Ak Corp Income Tax Revenues.pdf SFIN 2/21/2013 9:30:00 AM
SB 7
SB 12 AML Letter of Support.pdf SFIN 2/21/2013 9:30:00 AM
SB 12
SB 12 Sectional Analysis.pdf SFIN 2/21/2013 9:30:00 AM
SB 12
SB 12 Sponsor Statement.pdf SFIN 2/21/2013 9:30:00 AM
SB 12
SB 12 State Chamber Letter of Support.pdf SFIN 2/21/2013 9:30:00 AM
SB 12
SB 12 University Letter of Support.pdf SFIN 2/21/2013 9:30:00 AM
SB 12
SB007-DOR-TAX-01-25-13.pdf SFIN 2/21/2013 9:30:00 AM
SB 7