03/29/2011 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB101 | |
| HB182 | |
| HB204 | |
| HB205 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 101 | TELECONFERENCED | |
| *+ | HB 182 | TELECONFERENCED | |
| *+ | HB 204 | TELECONFERENCED | |
| *+ | HB 205 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 29, 2011
8:17 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Wes Keller, Vice Chair
Representative Paul Seaton
Representative Peggy Wilson
Representative Max Gruenberg
Representative Pete Petersen
Representative Kyle Johansen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 101(STA)
"An Act establishing the fourth Saturday of July each year as
Ted Stevens Day."
- MOVED CSHB 101(STA) OUT OF COMMITTEE
HOUSE BILL NO. 182
"An Act relating to distribution of annual reports by state
agencies."
- HEARD & HELD
HOUSE BILL NO. 204
"An Act relating to the State Procurement Code, including the
use of small procurement provisions for certain amounts of
leased space, the requirement of Alaska business license proof
for Alaska bidder and other procurement preferences, the
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, small
procurements, and writings; and providing for an effective
date."
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 205
"An Act relating to state and public entity procurement,
including the State Procurement Code, procurement preferences,
and contract awards; relating to the meaning of 'Alaska bidder';
and providing for an effective date."
- MOVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 101
SHORT TITLE: TED STEVENS DAY
SPONSOR(s): RULES
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) STA
03/29/11 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 182
SHORT TITLE: ELECTRONIC DISTRIBUTION OF AGENCY REPORTS
SPONSOR(s): JOHANSEN
03/09/11 (H) READ THE FIRST TIME - REFERRALS
03/09/11 (H) STA, FIN
03/29/11 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 204
SHORT TITLE: STATE PROCUREMENT CODE
SPONSOR(s): FAIRCLOUGH
03/23/11 (H) READ THE FIRST TIME - REFERRALS
03/23/11 (H) STA, FIN
03/29/11 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 205
SHORT TITLE: PUBLIC PROCUREMENT
SPONSOR(s): FAIRCLOUGH
03/23/11 (H) READ THE FIRST TIME - REFERRALS
03/23/11 (H) STA, FIN
03/29/11 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE CRAIG JOHNSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 101 as chair of the House
Rules Standing Committee, sponsor.
ERIN SHINE, Staff
Representative Craig Johnson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 101 on behalf of
Representative Johnson, chair of the House Rules Standing
Committee, sponsor.
MITCH ROSE
No address provided
POSITION STATEMENT: Testified in support of HB 101.
TARA SWEENEY, Senior Vice President
External Affairs
Arctic Slope Regional Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 101.
LILY SEAMAN BECKER (ph)
No address provided
POSITION STATEMENT: Testified in support of HB 101.
REPRESENTATIVE JOHANSEN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 182 as sponsor.
REED HARRIS, Staff
Representative Kyle Johansen
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HB 182, on behalf of Representative
Johansen, sponsor.
REPRESENTATIVE ANNA FAIRCLOUGH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As sponsor, presented HB 204.
VERN JONES, Chief Procurement Officer
Central Office
Division of General Services
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
204.
REPRESENTATIVE FAIRCLOUGH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 205 as sponsor.
VERN JONES, Chief Procurement Officer
Central Office
Division of General Services
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
205.
SCOTT THORSON
No address provided
POSITION STATEMENT: Testified on behalf of himself in support
of HB 205.
ACTION NARRATIVE
8:17:36 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:17 a.m. Representatives Seaton, Keller,
Johansen, P. Wilson, Petersen, Gruenberg, and Lynn were present
at the call to order.
HB 101-TED STEVENS DAY
CHAIR LYNN announced that the first order of business was HOUSE
BILL NO. 101, "An Act establishing November 18 of each year as
Ted Stevens Day."
8:17:45 AM
REPRESENTATIVE KELLER moved to adopt the committee substitute
(CS) for HB 101, Version 27-LS0221\B, Wayne, 1/27/11, as a work
draft.
REPRESENTATIVE P. WILSON objected for discussion purposes.
8:17:59 AM
REPRESENTATIVE CRAIG JOHNSON, Alaska State Legislature,
introduced HB 101 as chair of the House Rules Standing
Committee, sponsor.
8:18:36 AM
ERIN SHINE, Staff, Representative Craig Johnson, Alaska State
Legislature, presented HB 101 on behalf of Representative
Johnson, chair of the House Rules Standing Committee, sponsor.
She said following former U.S. Senator Theodore F. "Ted"
Stevens' death on August 9, 2010, Governor Sean Parnell declared
November 18 - Senator Stevens' birthday - in 2010 to be "Ted
Stevens Day." Ms. Shine said HB 101 initially was drafted with
the intent to establish Ted Stevens Day in Alaska to be
celebrated each year on November 18; however the Stevens family
requested the date be changed to the fourth Saturday in July, a
summer date that would make it possible for Alaskans to
celebrate the day in the great outdoors so loved by Senator
Stevens. She explained that Version B reflects that date
change.
8:21:24 AM
REPRESENTATIVE P. WILSON removed her objection to the motion to
adopt the committee substitute (CS) for HB 101, Version 27-
LS0221\B, Wayne, 1/27/11, as a work draft. There being no
further objection, Version B was before the committee.
8:22:16 AM
MITCH ROSE testified in support of HB 101. He noted that he
worked for Senator Ted Stevens in Washington, D.C., for nine
years, both as Senator Stevens' press secretary and chief of
staff, during which time he accompanied Senator Stevens on nine
of his addresses to the Alaska State Legislature. He said
Senator Stevens spoke to him about his memories of "his service
in Juneau" and the important role of [the legislature]. He
thanked the legislature for considering this bill as a way to
honor Senator Stevens.
MR. ROSE quoted U.S. Senator [Lisa] Murkowski as having said,
"Ted was Alaska." Mr. Rose said the list of accomplishments of
Senator Stevens is too long to fully recite, but he gave credit
to Senator Stevens for his work regarding: ANCSA, Title 9, The
Marine Mammal Protection Act, The Magnuson Stevens Act, The Ted
Stevens Olympic and Amateur Sports Act, The Pipeline
Authorization Act, and the Denali Commission. He said Senator
Stevens touched many people's lives and devoted his life to hard
work and bipartisan effort. He credited Senator Stevens for his
work related to airports, railroads, hospitals, and schools, and
for his devotion to Alaska. Mr. Rose concluded by expressing
his hope that the adoption of Ted Stevens Day would provide the
opportunity for people to enjoy the outdoors and think of the
man who tirelessly supported Alaska.
CHAIR LYNN noted that U.S. Senator Stevens had previously served
in the Alaska State Legislature and in the military.
8:24:43 AM
REPRESENTATIVE GRUENBERG reminisced about once having worked as
Ted Stevens' staff. He said he thinks that Senator Stevens was
the most remarkable person he met, and HB 101 is the least that
can be done to honor the man.
8:25:44 AM
TARA SWEENEY, Senior Vice President, External Affairs, Arctic
Slope Regional Corporation, testified in support of HB 101. She
echoed Mr. Rose's remarks about the many lives touched by U.S.
Senator Stevens. She said modern-day Alaska was built because
of the representation of Senator Stevens. She indicated that
moving Ted Stevens Day to the fourth [Saturday] of July will
promote enjoyment of the outdoors that Senator Stevens loved so
much. She said it is also a great opportunity for Alaskans to
teach future generations about the legacy of Senator Stevens.
8:27:47 AM
LILY SEAMAN BECKER (ph) testified in support of HB 101. She
relayed that she is the youngest of Ted Stevens' six children.
She stated that the family is honored that HB 101 has been
proposed, and she confirmed Ms. Shine's remark that the end of
July is a fitting time to celebrate the memory of Senator
Stevens. Ms. Becker said that is the time her father would
return home to Alaska to enjoy the U.S. Senate's recess in
August. She shared memories of discovering fishing holes around
the state with her father, and his insistence that those in
Washington, D.C., making decisions that affect Alaska, must come
experience its rugged beauty for themselves. Ms. Becker said
her father's service of over 40 years inspires her daily, and
she expressed her hope that Ted Stevens Day will be a day for
Alaskans to enjoy the great outdoors, to be healthy and active,
and to celebrate the state.
MS. BECKER quoted her father as having said the following to the
Alaska State Legislature:
While we may at times disagree on the path, we can all
agree on our goal: Just do what's right for Alaska;
Alaska succeeds when Alaskans work together.
MS. BECKER urged the committee to support HB 101.
CHAIR LYNN offered his condolences to the family of U.S. Senator
Stevens for their loss, and remarked upon the loss to the state
with his passing.
8:30:17 AM
CHAIR LYNN, after ascertaining that there was no one else who
wished to testify, closed public testimony.
8:30:26 AM
REPRESENTATIVE P. WILSON emphasized her appreciation for HB 101,
and said she is amazed by the work of U.S. Senator Stevens.
8:31:03 AM
REPRESENTATIVE JOHANSEN said he only interfaced with U.S.
Senator Stevens for a short while, but is honored to have done
so. He expressed his support of HB 101.
8:32:15 AM
REPRESENTATIVE SEATON opined that HB 101 is a fitting tribute to
the work of U.S. Senator Stevens, who worked toward solutions
for Alaska.
8:33:11 AM
REPRESENTATIVE KELLER moved to report (CS) for HB 101, Version
27-LS0221\B, Wayne, 1/27/11, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 101(STA) was reported out of the House State
Affairs Standing Committee.
8:34:03 AM
The committee took an at-ease from 8:34 a.m. to 8:35 a.m.
8:34:08 AM
HB 182-ELECTRONIC DISTRIBUTION OF AGENCY REPORTS
8:35:31 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 182, "An Act relating to distribution of annual reports
by state agencies."
8:36:00 AM
REPRESENTATIVE JOHANSEN, Alaska State Legislature, presented HB
182 as sponsor. He explained that currently statutes mandate
that state departments disseminate printed copies of their
annual reports, which he said made him question if the state was
keeping up with available technology. He said he considered the
idea of requiring every piece of paper published to be instead
sent electronically, with paper copies sent out only upon
request; however, he was told by Legislative Legal and Research
Services that doing so would require months of work by an
attorney to find all the references to print requirements in
statute. He said Legislative Legal and Research Services
recommended that the scope of the bill be narrowed to include
annual reports, and to write the language so that it
"encompasses everything rather than specifically going to each
individual chapter." Representative Johansen said he had the
bill drafted using that recommendation, but was torn in making
that decision and would value the committee's feedback.
REPRESENTATIVE JOHANSEN indicated that the proposed legislation
could save the state a few million dollars, and he ventured that
it would result in agency staff having more time for other
tasks. He acknowledged that there may be some concerns about
people who do not have access to computers, but said he thinks
the idea is worth discussing. He related that a librarian told
him that HB 182 could result in many more people requesting
copies made at the library, but he offered his understanding
that many of the reports are those given solely to the
legislature that the public may not even wish to print. For
example, he noted that Title 29 is printed annually, and he
offered his understanding that the cost for printing 400 copies
of it this year was approximately $4,900. He further related
that printed on the front of those copies is a message saying
that the actual statutes are not enclosed but can be accessed on
line. He said most of the reports are already being published
on line, while printed copies are still being made because of
statutory requirement.
8:44:20 AM
REPRESENTATIVE KELLER thanked Representative Johansen for
bringing the bill forward, and he talked about the chaos of
filing all the paperwork that is received. He asked the sponsor
if he is open to an amendment to build a web page linked to a
legislative home page that would have links to all the reports.
8:46:35 AM
REPRESENTATIVE JOHANSEN answered yes. He said he does not know
if the executive branch has a system like that currently.
8:47:35 AM
REED HARRIS, Staff, Representative Kyle Johansen, Alaska State
Legislature, on behalf of Representative Johansen, sponsor of HB
182, told Representative Keller that currently the Alaska on
line public notice system, set up under AS 44.62.175, is similar
to a public records clearing house, and could be used as an
example in drafting an amendment.
REPRESENTATIVE KELLER said [the executive branch] is developing
that system, and he concurred that it would be a good starting
point toward creating a system that held all reports.
REPRESENTATIVE JOHANSEN said he thinks that would be a good
starting point.
8:49:04 AM
REPRESENTATIVE GRUENBERG related that during the Sixteenth
Alaska State Legislature, legislation was passed that required
all the departments to include a disclaimer as to the cost of
making each publication. He said mandating such a disclosure
may provide helpful information to the House Finance Committee
when it comes time to pass the budget. He suggested HB 182
could be amended to make that happen.
8:51:29 AM
REPRESENTATIVE GRUENBERG directed attention to page 2, lines 6-
9, which provide the definition of "state agency", and asked the
sponsor to consider adding the Alaska Permanent Fund Corporation
and the Alaska Housing Finance Corporation (AHFC). Next he
suggested compiling a list of all the publications being
considered for conversion to electronic publication to determine
if some of them may be publications people would still want to
have printed in hard copy. He named the annual report of the
state as one such publication.
8:53:02 AM
REPRESENTATIVE JOHANSEN noted that there are "thresholds and
triggers" in statute related to how many reports there are and
how much those reports cost. He said the Office of Management
and Budget's fiscal note is indeterminate, because the cost
depends on the number of copies printed. He then noted that
Representative Hawker, who is on the House Finance Committee,
signed on as a co-sponsor of HB 182. He said he has confidence
in the work the House Finance Committee will do on the bill. He
acknowledged that the Alaska Permanent Fund Corporation has had
some concerns related to the bill, and he said he would work
with the corporation to iron out those issues.
8:55:38 AM
REPRESENTATIVE PETERSEN said he likes the concept of reducing
paper work. In response to Representative Petersen's previous
remark about the librarian's comment, he suggested that one copy
of each report could be sent to the library for people to see
there as a reference material.
REPRESENTATIVE JOHANSEN said he thinks the concern that under HB
182 some people may not have access to reports is valid, but
said he does not think giving a copy of all the reports to
libraries is a good idea. He ventured that most reports are
accessed by those with computers in their offices.
8:58:18 AM
MR. HARRIS pointed out that the language on page 2, lines 1-5,
allows a member of the public to order printed copies of annual
reports from state agencies, and further allows those state
agencies to waive the fees if they determine that to do so is in
the public interest.
REPRESENTATIVE JOHANSEN said he envisions having a public list
of all copies made and waivers granted. He said he thinks the
aforementioned language would address Representative Petersen's
previously stated concern.
8:59:58 AM
REPRESENTATIVE SEATON opined that the annual revenue source book
is vital to the functioning of the legislature and should
continue to be made available in hard copy. Another issue he
asked the sponsor to consider is that often charts and graphs,
which often designate certain statistics through color coding,
do not read well when printed in black and white. He said he
would like there to be some way to guarantee that reports with
such color charts and graphs are legible for those people who
have black and white printers and want to print those reports
from the on line source.
9:02:05 AM
REPRESENTATIVE KELLER referred again to the previously mentioned
Alaska On Line Public Notice System, and talked about many ways
to conduct searches on the system. He indicated that the system
uses Really Simple Syndication (RSS), and he explained that
people can get the RSS feed on their computers.
9:03:51 AM
REPRESENTATIVE GRUENBERG opined that there is merit in "looking
into the suggestion that this bill makes." He related that the
many parts of the district he represents are among the poorest
in Anchorage. He said a few years ago, the Federation of
Community Councils wanted to switch to 100 percent electronic
distribution of community council newsletters, but that would
not work in his district where most people do not own a
computer. He said he sent out a survey in a newsletter, and
noted that a majority of those who did respond did not do so on
line. He said the librarians in his district are "spread very
thin" already, and he expressed concern that under HB 182, there
would be "more requests on librarians" with no extra funds
offered, which would result in an unfunded mandate.
CHAIR LYNN said he cannot imagine a "run on libraries."
REPRESENTATIVE GRUENBERG said the chair might be surprised.
9:06:39 AM
REPRESENTATIVE P. WILSON questioned Mr. Harris' previous
statement that the Alaska State Archives is required to make
four copies of [reports]. She explained that that is difficult
to believe because of the amount of storage space that would
require.
MR. HARRIS said he does not know the exact statute, but
confirmed he read that requirement in statute.
REPRESENTATIVE P. WILSON opined that the committee should
consider this issue in conjunction with HB 182.
9:08:51 AM
CHAIR LYNN said he likes HB 182. He asked the sponsor what he
wants to do with the bill before moving it out of committee.
9:09:14 AM
REPRESENTATIVE JOHANSEN, regarding Representative Seaton's
concern about charts and graphs printed on black and white
printers, said he thinks there is a way to figure out that
issue. He said Representative Wilson made a valid point about
the storage of archives, and recalled a recent flood at the
Alaska State Archive building in Juneau, when people had to
scramble to save historical documents. He asked the committee
members to contemplate the changes needed in HB 182, and said he
would send his staff to members' offices to work on solutions.
He expressed his willingness to work on the bill over the next
year.
CHAIR LYNN reiterated that he likes HB 182.
9:11:58 AM
CHAIR LYNN announced that HB 182 was held over.
HB 204-STATE PROCUREMENT CODE
[Contains discussion of HB 205.]
9:12:10 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 204, "An Act relating to the State Procurement Code,
including the use of small procurement provisions for certain
amounts of leased space, the requirement of Alaska business
license proof for Alaska bidder and other procurement
preferences, the 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, small procurements, and writings; and providing for
an effective date."
9:12:41 AM
REPRESENTATIVE ANNA FAIRCLOUGH, Alaska State Legislature, as
sponsor, presented HB 204. She explained that during the
Twenty-Sixth Alaska State Legislature, while bringing forth a
veterans' procurement bill that addressed Alaska bidder
preferences, she discovered that procurement preferences were
"scattered throughout the code" and the state's "large
procurement versus small procurement code" had not been updated
in a long time. Representative Fairclough said HB 204 would:
increase the square footage for small procurement from 3,000 to
7,000 square feet; increase small procurement from 50,000 to
100,000 square feet for professional services and from 100,000
to 200,000 for construction; and eliminate "the employers for
the disabled." She said House Bill 225 - the procurement bill
of the last legislature - was split into HB 204 and HB 205, and
the only significant difference between the former bill and
current bills is that neither HB 204 nor HB 205 has anything to
do with "the offeror's preference."
REPRESENTATIVE FAIRCLOUGH, in response to Chair Lynn, explained
that during the Twenty-Sixth Alaska State Legislature, a
veterans' preference bill was passed, which allowed stackable
credit limited by $5,000 "on top of every other preference that
an individual or a company could qualify for." She said HB 204
focuses specifically on statutes related to Alaska's small
procurement codes.
9:15:00 AM
REPRESENTATIVE JOHANSEN asked the sponsor to confirm if the
"offeror's preference" had been removed.
9:15:28 AM
REPRESENTATIVE FAIRCLOUGH responded yes.
9:18:00 AM
REPRESENTATIVE GRUENBERG asked why the bill sponsor chose to use
two bills as a vehicle for the remaining content of House Bill
225.
REPRESENTATIVE FAIRCLOUGH explained that she put the least
controversial issue - the changes to the small procurement code
- in HB 204. In response to Representative Gruenberg, she said
the veteran [preference] was repealed and realigned in one
section of HB 205.
REPRESENTATIVE GRUENBERG asked what the reason is behind raising
the procurement code requirements and how many contracts will no
longer be done through the procurement code as a result.
9:20:01 AM
REPRESENTATIVE FAIRCLOUGH clarified that the bill is not about
not being in the procurement code, but is about raising the
limits for small procurement acquisitions. She explained that
the purpose of doing this is to reduce the load being carried
currently by those in charge of procurements and allow them to
focus on "the larger square footage issues." A further result
of HB 204, she said, would be the increase of competition.
9:21:28 AM
VERN JONES, Chief Procurement Officer, Central Office, Division
of General Services, Department of Administration, echoed
Representative Fairclough's response. In response to
Representative P. Wilson, he confirmed that the process for
smaller procurements is easier and may increase the number of
people responding to a request for proposals.
9:25:16 AM
REPRESENTATIVE FAIRCLOUGH paraphrased the sectional analysis,
which read as follows:
Section 1: 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 7.
Section 2: Amends AS 36.30.110(b)
Clarifies Alaska business license requirements for
competitive sealed bids and qualification for the
Alaska bidder preference. Change would require bidders
to show proof of their Alaska Business License prior
to award, but would require the license at the time of
bid submission in order to qualify for the Alaska
bidder preference.
Section 3: 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
10.
Section 4: Amends AS 36.30.210(b)
Clarifies construction contractor registration
requirements, now explicitly requiring registration
before award of a contract.
Section 5: 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 2.
Section 6: 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. Session: Alaska State
Section 7: 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.
Section 8: Amends AS 36.30.655
Eliminates reference to the removal of debarred or
suspended persons from vendor lists, reflecting the
repeal of a law establishing the vendor lists,
consistent with section 10.
Section 9: Amends AS 36.30.990
Adds new definitions for "in writing" and "written."
Section 10: Repeals statute establishing the vendor
list.
Section 11: Amends the uncodified law of the State of
Alaska
Clarifies the application of the procurement act to
pending solicitations during transition period.
Section 12: Effective Date
Language making the procurement act effective
immediately.
9:27:55 AM
REPRESENTATIVE GRUENBERG directed attention to Section 11(b), on
page 4, lines 17-19, which read as follows:
(b) Notwithstanding (a) of this section, this Act
applies to procurements or contracts described in
(a)(1) of this section if all parties to the
procurement or contract agree in writing that the
applicable provisions of this Act apply to the
solicitation or contract.
REPRESENTATIVE GRUENBERG described a hypothetical situation in
which both the government and the person who gets a contract
agree that the Act applies, but someone else who did not get a
contract might be aggrieved.
MR. JONES said he thinks practically speaking that would not
happen. He said the division issues procurements under the code
enforced at the time of issuance. He said under HB 204, only
the procurement methodology that would be used to get to an
award would be changed, not the protest and appeal procedures.
REPRESENTATIVE GRUENBERG asked Mr. Jones to confirm that what he
is saying is that the government "would not agree to that."
MR. JONES said that is correct.
REPRESENTATIVE GRUENBERG said with that assurance he thinks HB
204 is a good bill.
9:31:22 AM
REPRESENTATIVE KELLER moved to report HB 204 out of committee
with individual recommendations and the accompanying fiscal
notes.
9:31:30 AM
REPRESENTATIVE JOHANSEN objected.
CHAIR LYNN, in response to the bill sponsor, ascertained that
there was no one else who wished to testify.
REPRESENTATIVE JOHANSEN directed attention to Sections 8 and 10,
which require the commissioner to "maintain a list of all
persons debarred or suspended from consideration" and remove AS
36.30.050, respectively. He expressed concern that the public
be made aware of any person who has been debarred.
9:33:14 AM
MR. JONES responded that [AS 36.30.050] is statute that refers
to the Alaska bidders' list. He explained that the division is
doing away with the bidders' list, because it is an outdated
system that has fallen out of use; an on line system is
currently being used. He stated that the division will continue
to keep the list of debarred individuals.
REPRESENTATIVE JOHANSEN said he understands that, but wants to
ensure that the commissioner's list is made public.
REPRESENTATIVE JOHANSEN removed his objection. There being no
further objection, HB 204 was reported out of the House State
Affairs Standing Committee.
9:34:39 AM
The committee took a brief at-ease.
HB 205-PUBLIC PROCUREMENT
9:37:02 AM
CHAIR LYNN announced that the final order of business was HOUSE
BILL NO. 205, "An Act relating to state and public entity
procurement, including the State Procurement Code, procurement
preferences, and contract awards; relating to the meaning of
'Alaska bidder'; and providing for an effective date."
9:37:37 AM
REPRESENTATIVE FAIRCLOUGH, Alaska State Legislature, presented
HB 205 as sponsor. She paraphrased the sponsor statement, which
read as follows:
House Bill 205 makes changes to the state's
procurement code. Collectively, these changes
streamline the procurement code to ensure consistent
application of the law, and results in a more
understandable, efficient procurement process for the
state's business partners as well as our employees who
conduct procurements.
Streamlining is accomplished by simplifying the
application of our many preferences, which is
currently complex and confusing for employees and
vendors requiring a certain level of expertise.
The bill makes application of the preferences uniform
- currently, preferences do not contain the same
language so they must be applied differently. It also
clarifies which preferences are cumulative and those
that may not be combined.
House Bill 205 would add a new section to the
procurement code 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 and eliminates the
seldom used employers of people with disabilities
preference.
With the passage of this legislation, our procurement
process will be simplified and more user friendly to
Alaska business owners and our state workers.
I appreciate your support and consideration of this
legislation.
9:39:55 AM
REPRESENTATIVE JOHANSEN noted that similar legislation was
proposed the prior year, and he asked if any of the language in
Section 15, regarding marine vessels owned by the state, has
been changed from corresponding language in last years' bill.
9:40:18 AM
REPRESENTATIVE FAIRCLOUGH offered her understanding that there
is no change.
CHAIR LYNN offered his understanding that Vern Jones, had nodded
in the affirmative.
9:40:43 AM
REPRESENTATIVE P. WILSON offered her understanding that the bill
sponsor is "consolidating all the Alaska bidder preferences into
one section." She asked for further details regarding the
Alaska veterans' preference and "the one that you eliminated."
9:41:16 AM
REPRESENTATIVE FAIRCLOUGH talked about the Alaska veterans'
preference "stacked" with other preferences, including a
disabled veterans' preference. She said, "With this alignment,
there is one calculation and it is explicitly outlined."
Regarding the "eliminated preference," she related an incident
where a committee chose to eliminate a preference after hearing
testimony from an individual regarding his/her access and use of
a preference. She offered her understanding that the result was
the state's paying more because of the preference without really
receiving the benefit.
9:43:39 AM
VERN JONES, Chief Procurement Officer, Central Office, Division
of General Services, Department of Administration, added that
the Alaska veterans' preference remains unchanged under HB 205;
it is just in another section. Generally speaking, he said, the
only other changes to preferences is that they have all been
given uniform language to make them easier to understand and
apply. One exception is the employers of the disabled
preference. He asked the committee to consider that the state
already has disabled bidder preference and an employment program
preference to benefit developmentally disabled people and
shelter workshops that employ them. He said only two firms
qualify for the employer of the disabled preference; the
requirement is that 50 percent of the workforce must be
disabled. He said what happens is a business will "spin off a
subsidiary" with one disabled employee and an additional
preference, which gives that company an advantage. Mr. Jones
concluded, "We feel that ... it's being taken advantage of; ...
it's not widely used; and I believe it's duplicative."
9:45:17 AM
MR. JONES, in response to Representative Gruenberg, explained
that there is a Blind Vendor Act, which mandates the state to
"solicit qualified, blind-owned businesses" when there are
concession contracts in state facilities. He said that Act is
not affected by HB 205.
9:45:53 AM
REPRESENTATIVE KELLER moved to report HB 205 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 205 was reported out of
committee.
CHAIR LYNN acknowledged that there was another person who wished
to testify and invited him to do so.
9:46:45 AM
SCOTT THORSON, testifying on behalf of himself, thanked the bill
sponsor and Mr. Jones for their work in "cleaning this part of
the procurement code up." He related that he owns a small
company and has done a lot of work for the state over the years.
He expressed his support of HB 205.
9:47:19 AM
CHAIR LYNN restated that HB 205 had been reported out of
committee.
9:49:34 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:49
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 CS HB 101 ( ).pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 02 HB0101A.PDF |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 03 HB 101 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 04 Senator Ted Stevens Day Proclamation HB 101.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 05 Ted Stevens Citation HB 101.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 06 Fiscal Note HB 101 - Nov 18 - Ted Stevens Day.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 101 |
| 01 HB 182.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 182 |
| 02 HB 182 - Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 03 HB 182 - Backup Leg Research 2005.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 04 HB 182 - Backup Leg Research 2011.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 182 |
| 05 HB 182 - Backup Publication Spreadsheet.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 06 HB182-GOV-OMB-3-27-11.pdf |
HSTA 3/29/2011 8:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 182 |
| 01 HB 204.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 02 HB 204 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 03 HB 204 Sectional Analysis.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 04 HB204-DOA-PUR-3-23-11.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 204 |
| 01 HB 205.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 02 HB 205 Sponsor Statement.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 03 HB 205 Sectional Analysis.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |
| 04 HB205-DOA-PUR-03-23-11.pdf |
HSTA 3/29/2011 8:00:00 AM |
HB 205 |