Legislature(2007 - 2008)

05/09/2007 02:45 PM Senate JUD


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           SB  95-COMPETITIVE BIDDING FOR BALLOT PREP                                                                       
                                                                                                                                
3:28:54 PM                                                                                                                    
CHAIR FRENCH  announced the consideration  of SB 95.  [Before the                                                               
committee was CSSB 95(STA).]                                                                                                    
                                                                                                                                
SENATOR  BUNDE, sponsor  of SB  95, said  the bill  was requested                                                               
last fall.  He told  the committee  that the  state does  lots of                                                               
business with  small businesses throughout  Alaska. They  are the                                                               
back bone  of our  economy, he  said. In  doing business  at many                                                               
levels, the state  encourages economic activities and  to get the                                                               
best  product at  the  best price  it  uses competitive  bidding.                                                               
However, competitive bidding does  not apply to printing ballots.                                                               
It doesn't seem  right and it's hard to believe  there could only                                                               
be one printer  in the state. In fact there  are various printing                                                               
businesses  across the  state that  should be  given a  chance at                                                               
this project.                                                                                                                   
                                                                                                                                
3:31:26 PM                                                                                                                    
PATRICK  FOSTER, AG  Publishing and  Printing, said  he has  been                                                               
working in the  print industry in Alaska for nearly  30 years. He                                                               
supports  SB  95  because  he  believes it  is  unfair  that  the                                                               
Division  of Elections  sole-sources  the printing  of the  state                                                               
election ballots  to a  single shop on  the Kenai  Peninsula when                                                               
there  are  many printing  companies  in  Alaska that  are  fully                                                               
capable of printing the ballots.                                                                                                
                                                                                                                                
He explained  that the  State of  Alaska uses  Diebold electronic                                                               
ballot  readers  for the  purpose  of  tallying results  for  its                                                               
statewide  elections. Diebold  requires  printing companies  that                                                               
print  ballots destined  for their  machines to  be certified  by                                                               
them.  At the  time the  state adopted  the use  of these  ballot                                                               
readers  8 years  ago,  no companies  in  Alaska were  certified.                                                               
Shortly thereafter a small Alaska  printing company was certified                                                               
and the Division of Elections  has been handing over the contract                                                               
to that  company ever since -  despite the fact that  a number of                                                               
other  Alaska  printing companies  have  voiced  a desire  to  be                                                               
included in the  process. His company became  a certified Diebold                                                               
printer in  2003. He  understood the  comfort level  the division                                                               
has in working with a printer that  has proven to do a decent job                                                               
and  he  tries  to  give  his customers  that  same  comfort  and                                                               
recently  succeeded  in  a  ballot   printing  contract  for  the                                                               
Municipality of Anchorage. He said  at first the clerk was uneasy                                                               
about  switching printing  companies, but  he has  been told  the                                                               
city is happy  with his product and it has  benefited the city by                                                               
having to pay less for its  ballots. He has been printing ballots                                                               
for them for the last three years.                                                                                              
                                                                                                                                
He thinks  that the  Division of Elections  could develop  a fine                                                               
working  relationship with  any  number of  other printers.  Some                                                               
might think that printing a large  number of ballots is a complex                                                               
process. That is reason enough to  leave things the way they are,                                                               
but nothing  is further  from the truth.  Printing a  few hundred                                                               
thousands ballots  would be daunting  for a small shop,  but they                                                               
would not bid  on this project anyway. Alaska  has many companies                                                               
that are  fully capable of  handling this  volume of work  in the                                                               
time  required  including  handling the  packaging  and  shipping                                                               
logistics.                                                                                                                      
                                                                                                                                
MR. FOSTER  said it's  possible the  division could  be concerned                                                               
with putting  the ballots out to  bid each election cycle  and he                                                               
recommended that each  bid be awarded for an  election cycle with                                                               
a performance  option for  other ones.  So it  could go  for four                                                               
years without going  out to bid. He thinks  that opening printing                                                               
of  ballots  up  to  competitive  bid  could  save  the  state  a                                                               
substantial  amount of  money, which  could be  "spread around  a                                                               
little more to other business." The  state would also not have to                                                               
rely on just one printing company for printing its ballots.                                                                     
                                                                                                                                
3:35:59 PM                                                                                                                    
CHAIR  FRENCH  found no  further  questions.  He noted  that  Mr.                                                               
Kendal submitted  a letter for the  bill packet. He asked  if the                                                               
bill would  require that  each election  be competitively  bid or                                                               
could a two-election cycle package be put out to (RFP).                                                                         
                                                                                                                                
SENATOR  BUNDE replied  it's within  the  Division of  Elections'                                                               
purview to develop its own guidelines and process.                                                                              
                                                                                                                                
CHAIR FRENCH commented the process could be broken up by region.                                                                
                                                                                                                                
SENATOR WIELECHOWSKI asked for clarification  of language on page                                                               
3, lines 30-31, that adds a new section.                                                                                        
                                                                                                                                
CHAIR FRENCH  answered that section  is simply the result  of re-                                                               
numbering.                                                                                                                      
                                                                                                                                
3:38:02 PM                                                                                                                    
JASON HOOLEY, Special Assistant for  the Office of the Lieutenant                                                               
Governor, said the current bill is a workable solution.                                                                         
                                                                                                                                
CHAIR FRENCH found no further questions or testimony.                                                                           
                                                                                                                                
SENATOR MCGUIRE  motioned to report  CSSB 95(STA)  from committee                                                               
with  individual  recommendations  and attached  fiscal  note(s).                                                               
There being no objection, it was so ordered.                                                                                    

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