Legislature(2013 - 2014)

03/27/2013 02:51 PM FIN


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02:51:32 PM Start
02:51:37 PM SB12
03:02:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 27, 2013                                                                                            
                         2:51 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
2:51:32 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the House Finance Committee meeting                                                                     
to order at 2:51 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative Lindsey Holmes                                                                                                   
Representative Scott Kawasaki, Alternate                                                                                        
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative David Guttenberg                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Anna Fairclough; Vern Jones, Chief Procurement                                                                          
Officer, Department of Administration.                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 112    REPEAL FILM PRODUCTION TAX CREDIT                                                                                     
                                                                                                                                
          HB 112 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
SB 12     PUBLIC PROCUREMENT                                                                                                    
                                                                                                                                
          SB 12 was REPORTED out of committee with a "do                                                                        
          pass" recommendation and with one previously                                                                          
          published zero impact fiscal note: FN1 (ADM).                                                                         
                                                                                                                                
SB 23     AIDEA: LNG PROJECT; DIVIDENDS; FINANCING                                                                              
                                                                                                                                
          SB 23 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
2:51:37 PM                                                                                                                    
                                                                                                                                
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."                                                                     
                                                                                                                                
2:53:13 PM                                                                                                                    
                                                                                                                                
SENATOR ANNA  FAIRCLOUGH, explained  that the  bill proposed                                                                    
to streamline the procurement process  for Alaska. The small                                                                    
procurement   aspect  would   advantage   rural  and   urban                                                                    
communities  by  allowing  more people  to  bid  on  Alaskan                                                                    
projects.  She pointed  out that  SB  12 clarified  Alaska's                                                                    
business  license requirements  and increased  the threshold                                                                    
under which a state agency  may use the informal bid process                                                                    
from $50  thousand to $100  thousand for goods  and services                                                                    
and from  $100 thousand  to $200 thousand  for construction.                                                                    
She added that  SB 12 increased the  small procurement lease                                                                    
space  from  3000 to  7000  square  feet. The  bill  allowed                                                                    
electronic bids  and eliminated  an outdated  bidder's list.                                                                    
The department handled  the bidder's list online.   The bill                                                                    
makes applications  on preferences  uniform so  the language                                                                    
remains consistent and easy to read.                                                                                            
                                                                                                                                
Senator  Fairclough  added  that   the  bill  clarified  and                                                                    
consolidated  the cumulative  preferences under  one statute                                                                    
in code.  The bill  eliminated a  seldom used  employer with                                                                    
disabilities   preference,   but   allowed   and   continued                                                                    
disabilities  preferences. The  bill lowered  the range  for                                                                    
the  new Chief  Procurement Officer  from  a range  27 to  a                                                                    
range 25, which  was a new component of the  bill. The Chief                                                                    
Procurement  Officer  would no  longer  be  the director  of                                                                    
general services. Collectively  the changes would streamline                                                                    
the procurement  process and the code  and ensure consistent                                                                    
application of Alaska's procurement law.                                                                                        
                                                                                                                                
VERN  JONES,   CHIEF  PROCUREMENT  OFFICER,   DEPARTMENT  OF                                                                    
ADMINISTRATION, stated  that the department supported  SB 12                                                                    
for  procurement  reform  and  had  been  working  with  the                                                                    
sponsor for five years on procurement reform.                                                                                   
                                                                                                                                
Senator Fairclough stated that  the bill language recognized                                                                    
veteran's papers. She  added that Vocational-Education could                                                                    
recognize a  disability based  on federal  documentation. In                                                                    
the  previous  committee, a  few  people  testified on  that                                                                    
provision.                                                                                                                      
                                                                                                                                
Co-Chair Stoltze  pointed out that the  comments received by                                                                    
his office regarding  the bill were from  veterans about the                                                                    
provision.  He  considered  a  proposed  amendment  for  the                                                                    
Division of Elections and their  printing issues. He thought                                                                    
that SB  12 might be a  vehicle for the issue.  He asked the                                                                    
sponsor  if  she thought  that  the  issue was  flushed  out                                                                    
enough to be included in the legislation.                                                                                       
                                                                                                                                
2:58:03 PM                                                                                                                    
                                                                                                                                
Senator Fairclough  responded that she was  working with the                                                                    
Division  of Elections  on a  separate bill.  She wished  to                                                                    
respect the  process of SB  12 and allow  it to pass  in its                                                                    
entirety.  She  believed  that   she  had  the  department's                                                                    
support regarding competition for election and printing.                                                                        
                                                                                                                                
Co-Chair Stoltze [undecipherable].                                                                                              
                                                                                                                                
Senator  Fairclough appreciated  the support  for the  bill.                                                                    
She stated that  no opposition in the form  of testimony was                                                                    
received for the bill.                                                                                                          
                                                                                                                                
Co-Chair Stoltze expressed respect for the process.                                                                             
                                                                                                                                
2:59:49 PM                                                                                                                    
                                                                                                                                
Representative Costello  discussed the one fiscal  note from                                                                    
Department of Administration showing zero fiscal impact.                                                                        
                                                                                                                                
Representative  Kawasaki asked  about the  zero fiscal  note                                                                    
and  why there  was  no  fiscal impact  if  the limits  were                                                                    
raised to streamline the process.                                                                                               
                                                                                                                                
Senator  Fairclough  replied  that  the  bill  attempted  to                                                                    
refocus the attention of  the procurement division regarding                                                                    
contracts  and leases  that  required  additional time.  The                                                                    
threshold was raised  on the lease allowing  more time spent                                                                    
on  the  7000 square  foot  leases.  The process  allowed  a                                                                    
streamline   by   encouraging    the   department   to   act                                                                    
appropriately for the people of Alaska.                                                                                         
                                                                                                                                
Representative  Holmes commented  that she  hoped the  third                                                                    
time was the charm.                                                                                                             
                                                                                                                                
3:01:27 PM                                                                                                                    
                                                                                                                                
Representative  Wilson   MOVED  to  REPORT  SB   12  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note(s). There  being NO  OBJECTION, it                                                                    
was so ordered.                                                                                                                 
                                                                                                                                
SB  12  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
impact fiscal note: FN1 (ADM).                                                                                                  
                                                                                                                                
3:02:45 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
                                                                                                                                

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