Legislature(2011 - 2012)CAPITOL 106
03/13/2012 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB212 | |
| HB239 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 212 | TELECONFERENCED | |
| *+ | HB 239 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 13, 2012
8:07 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Wes Keller, Vice Chair
Representative Paul Seaton
Representative Max Gruenberg
Representative Pete Petersen
Representative Kyle Johansen
MEMBERS ABSENT
Representative Peggy Wilson
COMMITTEE CALENDAR
HOUSE BILL NO. 212
"An Act relating to requirements for persons holding provisional
drivers' licenses."
- MOVED CSHB 212(STA) OUT OF COMMITTEE
HOUSE BILL NO. 239
"An Act relating to the procurement of architectural,
engineering, or land surveying contracts funded by money from
the state."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 212
SHORT TITLE: PROVISIONAL DRIVER'S LICENSE STICKER
SPONSOR(s): REPRESENTATIVE(s) MILLETT BY REQUEST
03/29/11 (H) READ THE FIRST TIME - REFERRALS
03/29/11 (H) STA, TRA, FIN
03/13/12 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 239
SHORT TITLE: PROF. SERVICES IN STATE-FUNDED CONTRACTS
SPONSOR(s): REPRESENTATIVE(s) HOLMES
04/16/11 (H) READ THE FIRST TIME - REFERRALS
04/16/11 (H) STA, L&C
03/13/12 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
JEFF TURNER, Staff
Representative Charisse Millett
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 212 on behalf of
Representative Millett, sponsor.
JESSICA LUIKEN
Anchorage, Alaska
POSITION STATEMENT: Testifying on behalf of herself, offered a
PowerPoint presentation in support of HB 212.
WHITNEY BREWSTER, Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
212.
LIEUTENANT RODNEY DIAL, Deputy Commander
A Detachment
Division of Alaska State Troopers
Department of Public Safety
POSITION STATEMENT: Answered questions during the hearing on HB
212.
JOSEPH MASTERS, Commissioner
Department of Public Safety
Anchorage, Alaska
POSITION STATEMENT: Responded to discussion during the hearing
on HB 212.
REPRESENTATIVE LINDSEY HOLMES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As sponsor, presented HB 239.
MIKE COUMBE, Staff
Representative Lindsey Holmes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Offered a summary of HB 239 on behalf of
Representative Holmes, sponsor.
MARK O'BRIEN, Chief Contracts Officer
Contracting and Appeals
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Offered information regarding the state's
selection process and responded to questions during the hearing
on HB 239.
KATHIE WASSERMAN, Legislative Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 239.
ACTION NARRATIVE
8:07:04 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:07 a.m. Representatives Keller, Seaton,
Johansen, Petersen, Gruenberg, and Lynn were present at the call
to order.
HB 212-PROVISIONAL DRIVER'S LICENSE STICKER
8:07:38 AM
CHAIR LYNN announced that the first order of business was HOUSE
BILL NO. 212, "An Act relating to requirements for persons
holding provisional drivers' licenses."
8:07:46 AM
JEFF TURNER, Staff, Representative Charisse Millett, Alaska
State Legislature, presented HB 212 on behalf of Representative
Millett, sponsor. He said Alaska's current provisional driver's
license law places restrictions on young drivers until they get
more experience behind the wheel. For example, the holder of a
provisional driver's license cannot operate a vehicle between
the hours of 1 a.m. and 5 a.m. unless someone over the age of 21
is in the vehicle. He said the restrictions are being ignored,
which puts other drivers at risk. He stated that under HB 212,
a driver with a provisional driver's license would be required
to display a sticker issued by the Division of Motor Vehicles
(DMV). He explained that the sticker would identify others
drivers and the police that the driver is a holder of a
provisional license. He said the bill is being introduced at
the request of a young constituent named, Jessica Luiken.
8:09:50 AM
JESSICA LUIKEN testified that she took part in Close Up, in
preparation for which she had to present a project or idea to a
state representative and senator. She said the product of that
project is HB 212.
MS. LUIKEN offered a PowerPoint presentation in support of HB
212. She directed attention to slide 2, which shows the cause
of death among teenagers from 1999-2006, and she stated that out
of the 48 percent of deaths that were caused by unintentional
injury, 73 percent of those were caused by motor vehicle traffic
accidents.
8:11:08 AM
The committee took an at-ease from 8:11 a.m. to 8:12 a.m.
8:12:31 AM
MS. LUIKEN directed attention to slide 3, which shows 2004-2008
statistics for Alaska drivers ages 14-16, and noted that the
numbers for fatal crashes and fatal injuries were highest in
2008. She turned to slide 4, which she said shows Alaska
statistics for drivers ages 16-17, from 2002-2011, but said the
statistics do not reflect the effects crashes had on the
occupants and passengers of the vehicles or "the effects that it
would have on the public." As shown on slide 5, she listed the
following reasons that drivers with provisional licenses are
hazardous: apprehension, lack of experience, weather
conditions, no driver education requirement, and Alaska's
diversity from other states. Regarding the latter, she said
Alaska has "one of the most dangerous roads in America, midnight
fishing runs," and is "constantly on the lookout for wildlife."
8:14:53 AM
MS. LUIKEN directed attention to slides 6-8, which show a
solution and reasons to support it. The solution, she
explained, would be to require each driver with a provisional
license to display a sticker issued by the DMV in the rear
window of each vehicle he/she drives. The reasons, she
outlined, are that displaying the sticker: is a simple solution
to benefit Alaska drivers; will impress other driver's to be
more cautious driving around the novice teen driver; will
provide other drivers the information necessary to understand
the provisional licensee's position; and will assist law
enforcement officers in implementing the law.
8:16:23 AM
MS. LUIKEN directed attention to slide 9, which suggests
enforcement be a fine of not more than $300 for failure to
display the sticker. She stated that the enforcement will
impress upon young drivers the importance of displaying the
sticker. Ms. Luiken directed attention to slide 10, which shows
the procedures that would take place under HB 212: The State of
Alaska would supply the [division] with stickers to distribute
to those persons acquiring a provisional license; those
acquiring the provisional license would pay for the sticker as
part of the permitting process; and the sticker would be placed
on the rear window of the operating vehicle. Referencing slide
11, Ms. Luiken offered a summary of the previously stated
points, proffering that HB 212 would help save Alaskan lives.
8:18:24 AM
MS. LUIKEN, in response to Representative Seaton, said she does
not know when Alaska instituted the provisional driver's
license. She offered her understanding that other states have
the graduated license program.
MR. TURNER offered his understanding that the original
legislation that brought about Alaska's provisional driver's
license was sponsored by then Representative Bruce Weyhrauch in
2001.
REPRESENTATIVE GRUENBERG said he thinks it was 2003 or 2004.
REPRESENTATIVE SEATON said he thinks it could have been 2005 or
2006, and he noted that the statistics in Ms. Luiken's
PowerPoint presentation begin in 1999; therefore, he ventured
that not having a provisional driver's license may not be the
cause of the number of teenage deaths from motor vehicle
accidents.
8:20:23 AM
REPRESENTATIVE KELLER suggested a magnet would be better than a
sticker.
MS. LUIKEN responded that a magnetic sign was considered but
discounted, because it could too easily fall off a car during
winter or in a car wash. She said her research shows that
stickers that are affixed for the six-month provisional license
period are not difficult to remove.
CHAIR LYNN remarked that young people may drive their parents'
automobile.
MS. LUIKEN indicated that six months is a short period of time.
She said in a case where there are two cars owned by one family,
she would recommend that each car display a sticker.
8:22:41 AM
MS. LUIKEN, in response to Representative Johansen, imparted
that she is homeschooled and is a senior.
REPRESENTATIVE JOHANSEN praised Ms. Luiken's professionalism and
thoroughness.
8:25:08 AM
MS. LUIKEN, in response to Representative Gruenberg, offered her
understanding that the provisional driver's license is valid for
two years, but the young person to whom it has been issued is
required to have it for only six months.
REPRESENTATIVE GRUENBERG echoed the praise of Ms. Luiken
previously expressed by Representative Johansen. He said he
would like to see Alaska require driver's education, because it
would reduce the number of automobile accidents. He expressed
appreciation of HB 212.
8:28:03 AM
MS. LUIKEN agreed that Alaska should implement a driver's
education requirement. She said implementing a requirement for
those with provisional driver's licenses to display a sticker
might reduce the cost of insurance for Alaskans.
REPRESENTATIVE GRUENBERG asked if anyone had spoken with the
insurance industry in that regard.
MS. LUIKEN answered that she has not, but could get that
information.
8:29:08 AM
MS. LUIKEN, in response to Representative Petersen, reiterated
that the intent of having the sticker displayed is so that both
law enforcement and other drivers can see them.
8:30:49 AM
REPRESENTATIVE SEATON described a situation in which there are
multiple children in a family and a sticker on the family car,
and police may stop a driver who has passengers in the car,
thinking that he/she is the provisional licensee who should not
be driving in that situation. He asked Ms. Luiken if she has
asked police officers if they have concerns about this kind of
thing happening.
8:31:52 AM
MS. LUIKEN said she has considered that, but has no answer other
than to advise officers to use good judgment. She added that
she intends to speak with law enforcement to find out if they
have any suggestions for the proposed legislation.
8:32:38 AM
MR. TURNER said he discussed HB 212 with a legislative liaison
from the Department of Public Safety, who raised no concerns.
8:33:00 AM
REPRESENTATIVE GRUENBERG recalled that in the past, when the
committee heard a bill about a seatbelt requirement, concern was
expressed about unnecessary stops by police, and the first
seatbelt law that resulted from that debate allowed only a
secondary stop. Subsequently, he said, it was changed to a
primary stop. He asked if consideration had been given to
include a primary stop provision in HB 212. In response to the
chair, he explained the difference between a primary and
secondary stop.
8:35:53 AM
MS. LUIKEN said the intent was that a stop related to the
provisional licensee would be a primary one; however, she said
she could understand the reasons for changing it to secondary
stop.
CHAIR LYNN ventured that it may be difficult for a police
officer to tell how old a driver is, which may result in the
police officer pulling over a driver he/she thinks should be
displaying a provisional driver's license sticker only to find
out the driver is past the age that would, under HB 212, require
a sticker.
8:37:07 AM
MS. LUIKEN, in response to Representative Seaton, said she does
not know what the current fine is for violating a provisional
license, and she deferred to Whitney Brewster, the director of
the DMV.
REPRESENTATIVE SEATON directed attention to page 1, lines [9-14]
of the proposed bill, which read as follows:
However, a person charged with violating this
section may not be convicted if the person
(1) has not previously been arrested,
charged, or cited for a violation of this section; and
(2) produces in court proof that the
person has obtained and affixed the sticker required
by this subsection.
REPRESENTATIVE SEATON asked if the intent of the bill is to
allow a "free pass," by which a person could be let off of a
first violation if he/she subsequently bought a sticker and
displayed it.
MS. LUIKEN answered that she does not think that is the intent
of the bill.
REPRESENTATIVE SEATON offered his understanding that the
language of the bill would allow that.
8:40:03 AM
MR. TURNER told Representative Seaton that "the provisions you
pointed out are correct."
8:40:21 AM
CHAIR LYNN said he has a problem with the concept of the sticker
when there could be multiple vehicles. He expressed a wish that
something more removable could be used, such as the handicap
driver permit that is hung in the rear view mirror. He remarked
that it may be difficult for some people to access the back
window in the vehicle.
8:41:26 AM
REPRESENTATIVE JOHANSEN offered his understanding that in other
countries, the stickers used are unique in that they are static
and can be affixed, removed, and reaffixed multiple times. He
asked if that is what Ms. Luiken found in her research.
MS. LUIKEN replied that she had researched both magnetic and
static stickers, but ultimately chose a more permanent sticker
for reasons previously stated.
8:42:32 AM
REPRESENTATIVE KELLER ventured that if he were of the age to get
a provisional license, he would figure out a way to get more
than one sticker to maximize the opportunity to drive.
8:43:02 AM
REPRESENTATIVE PETERSEN surmised that an older sibling might
remove the sticker belonging to a younger sibling, because
he/she would not want to be seen driving with it.
8:43:36 AM
REPRESENTATIVE GRUENBERG described a situation in which someone
opens a hatchback door and the sticker on the window might fall
off. He expressed concern that the driver may not be aware that
that has happened, and he/she could incur a fine of $300.
8:44:29 AM
MS. LUIKEN offered her understanding that the sticker would be
on the outside of the car.
REPRESENTATIVE GRUENBERG then expressed concern about
maintaining the life of the sticker when ice is scraped.
CHAIR LYNN added another challenge may be the windshield wiper.
8:44:46 AM
MR. TURNER said the bill simply says "sticker". He suggested
that it may be the best option to allow the DMV or the
committees hearing the bill to work out the details.
8:45:36 AM
WHITNEY BREWSTER, Director, Division of Motor Vehicles,
Department of Administration, responded to questions from the
committee. Regarding the effective date of the provisional law,
she said the bill passed in 2004 and was put into effect on
1/1/2005. Regarding the type of sticker, she said the DMV had
contemplated the static cling type of sticker, but said she
appreciates the comments of the committee in determining the
best way to adhere the sticker. Regarding the operation of a
vehicle without a provisional license, she said the fine is $200
and a 2-point ticket. Regarding the life of a provisional
license, she said the life of the license is five years, but
expires when the holder of it turns 18; however, the driver is
not required to come in to change out the license. Ms. Brewster
relayed that there are 6,251 unexpired provisional licenses on
the street today.
8:48:25 AM
MS. BREWSTER, in response to Representative Johansen, said the
word "sticker" would allow the DMV to issue a static cling
sticker or a sticker that adheres to the window.
8:48:54 AM
MS. BREWSTER, in response to Representative Gruenberg, said she
is not aware of any insurance ramifications for a provisional
driver, but deferred to the Division of Insurance.
8:49:31 AM
MR. BREWSTER, in response to Chair Lynn, said the DMV is neutral
on HB 212; however, she noted that the proposed legislation
would be fairly easy and inexpensive to implement.
8:49:53 AM
MS. BREWSTER, in response to Representative Seaton, said she
could not think offhand of a term better than sticker, but
ventured that the DMV could come up with one fairly easily. In
response to a follow-up question, she said the approximate cost
of each static cling sticker would be 20 cents, and the total
cost to the DMV would be less than $1,200, which is why the
division has submitted a zero fiscal note.
8:51:21 AM
MS. BREWSTER, in response to Representative Petersen, offered
her understanding that a person could obtain more than one
sticker. In response to Representative Seaton, she said the
earliest age at which a person qualifies for a provisional
driver's license is 16, at which point, he/she is required to
have that provision license for six months, during which time
he/she must remain infraction-free. Under that scenario, she
relayed, it would be possible for a person to obtain a regular
driver's license by the age of 16 and a half.
8:53:26 AM
LIEUTENANT RODNEY DIAL, Deputy Commander, A Detachment, Division
of Alaska State Troopers, stated that the department is neutral
on HB 212. In response to the previous expressed concern
regarding stops made by officers, he stated, "We would expect
that law enforcement officers would use discretion in the
application, and attempt to make visual determinations of the
operator to determine if they appear to be within the 16- to 18-
year range bound by the requirements." He said generally
violations of the provisional driver's license law are
identified as a result of other traffic violations or through
contact by a concerned parent or citizen.
8:54:31 AM
REPRESENTATIVE PETERSEN offered a hypothetical situation in
which a provisional driver - with teenage passengers who were
not relatives - was pulled over by law enforcement, and there
was no sticker displayed. He asked if, [under HB 212], that
driver would be subject to both a $200 and $300 fine, totaling
$500.
LIEUTENANT DIAL answered that that is possible. He said fines
are set by the Alaska Supreme Court, and he offered his
understanding that the language of HB 212 states that the fine
could be up to $300, so it could be less. He further
interpreted HB 212 as setting up the first violation of the law
as a correctable citation, such as is a citation for a
nonworking headlight or taillight.
8:55:43 AM
REPRESENTATIVE GRUENBERG offered a hypothetical situation in
which a sticker has fallen off because of weather, and the
driver is pulled over but finds the sticker and shows it. He
asked if the person would be subject to prosecution if the same
thing happened twice.
LIEUTENANT DIAL responded that technically Representative
Gruenberg is correct, although he said officers do have
discretion. He offered his belief that officers would not issue
a citation under those circumstances if it was apparent that the
person was attempting to comply with the law.
8:57:21 AM
JOSEPH MASTERS, Commissioner, Department of Public Safety,
pointed out how unusual it is for a young person to see a need
for a bill, do the research, and come up with a solution. He
stated that although the department holds a neutral stance on HB
212, his presence at the bill hearing is in support of people,
especially young people, getting involved in the process of
creating laws.
8:59:34 AM
MS. LUIKEN directed attention back to slide 6 of the PowerPoint
presentation, which shows another option to designate a
provisional driver, used by New Jersey, which is: a red sticker
placed on the license plate. She said she would research
answers to the questions that had been asked. In response to
the chair, she confirmed that she would like to see the bill
pass out of committee.
9:01:43 AM
CHAIR LYNN closed public testimony.
9:01:51 AM
REPRESENTATIVE SEATON moved to adopt Conceptual Amendment 1, as
follows:
Page 1, line 5:
Delete "a sticker"
Insert "an identification tag"
9:02:37 AM
CHAIR LYNN objected for the purpose of discussion.
REPRESENTATIVE SEATON spoke to Conceptual Amendment 1. He
offered his understanding that concern had been expressed
regarding a sticker that once affixed, would not be moveable
from one vehicle to another, and there may be other options. He
said he would like to give the DMV a broader scope in the design
and designation of the tag.
REPRESENTATIVE GRUENBERG indicated concerned about the same
issue.
9:04:05 AM
CHAIR LYNN removed his objection.
REPRESENTATIVE JOHANSEN objected to Conceptual Amendment 1. He
said the director of the DMV told the committee that the current
language offers enough leeway, and he stated a preference to
figure out something concrete, rather than offering a conceptual
change in this regard.
9:05:01 AM
REPRESENTATIVE KELLER concurred with Representative Johansen.
He said, "If we leave it open, there's a danger of getting it
too broad."
9:05:29 AM
MS. BREWSTER, in response to Representative Gruenberg, stated
her belief that the language indicating a sticker is "relatively
broad" and "could encompass both a sticker in the traditional
sense, as well as a static cling sticker - anything that would
allow for the ... identification to be somehow adhered to the
window."
REPRESENTATIVE GRUENBERG stated opposition to Amendment 1, with
the understanding that as bill goes through the committee
process, Ms. Brewster would let other committees know if she
thinks of any language that the DMV would prefer.
MS. BREWSTER said that would be acceptable.
9:07:03 AM
REPRESENTATIVE PETERSEN said when he hears the word "tags" he
thinks of tags on license plates. He offered his understanding
that it is not the intent of the sponsor to issue tags that
would be put on license plates, and he opined that the word
"sticker" would be broad enough.
9:07:27 AM
REPRESENTATIVE SEATON withdrew Conceptual Amendment 1.
9:07:38 AM
REPRESENTATIVE GRUENBERG expressed concerned about "this being a
primary stop." In response to Chair Lynn, he offered his
understanding that under HB 212, a law enforcement officer could
pull a person over after visually observing that the driver
appeared to be within the age range of a provisional driver but
did not have a sticker displayed.
9:08:44 AM
REPRESENTATIVE GRUENBERG moved Conceptual Amendment 2, such that
the failure to have a sticker would not be a primary
[infraction].
CHAIR LYNN objected for the purpose of discussion.
9:09:14 AM
REPRESENTATIVE KELLER stated support for Conceptual Amendment 2.
REPRESENTATIVE GRUENBERG said similar language was used to
address a seatbelt law.
9:09:46 AM
REPRESENTATIVE GRUENBERG, in response to Representative
Petersen, explained that by law, every stop is a primary one
unless there is specific language stating that it must be a
secondary stop.
9:10:33 AM
CHAIR LYNN withdrew his objection. There being no further
objection, Conceptual Amendment 2 was adopted.
9:10:57 AM
REPRESENTATIVE JOHANSEN, regarding the concern that stickers
could fall off, stated that driving is a privilege, and a young
driver might learn a lesson in responsibility if he/she has to
pay $300 because a sticker has fallen off the vehicle.
9:11:36 AM
CHAIR LYNN remarked that he has a lot of faith in young drivers.
He said they may not have experience, but they have quick
reflexes.
9:12:49 AM
REPRESENTATIVE GRUENBERG directed attention to the phrase, "in
the rear window", on page 1, lines 4-5, and he asked Ms.
Brewster if she would like the phrase eliminated to allow the
division to determine where the sticker should be placed.
9:13:27 AM
MS. BREWSTER replied that the DMV had contemplated that [the
sticker] would be in the rear window of the vehicle. She agreed
with Ms. Luiken that in Alaska's climate it would be difficult
to keep a magnet on the vehicle. She said she thinks the rear
window is the most appropriate place for the sticker; therefore,
she said she is fine with the language as is.
9:14:07 AM
REPRESENTATIVE KELLER moved to report HB 212, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 212(STA) was
reported out of the House State Affairs Standing Committee.
9:14:39 AM
The committee took an at-ease from 9:15 to 9:16 a.m.
9:16:44 AM
HB 239-PROF. SERVICES IN STATE-FUNDED CONTRACTS
9:16:45 AM
CHAIR LYNN announced that the final order of business was HOUSE
BILL NO. 239, "An Act relating to the procurement of
architectural, engineering, or land surveying contracts funded
by money from the state."
9:17:00 AM
REPRESENTATIVE LINDSEY HOLMES, Alaska State Legislature, as
sponsor, presented HB 239. She said currently the State of
Alaska uses a qualifications based selection process when using
its own money for state projects; the federal government
similarly requires qualification based criteria when federal
grants or other money are involved. Under HB 239, the process
would be extended to state grants being used [for architectural,
engineering, and land surveying] projects.
REPRESENTATIVE HOLMES said when consumers search for a physician
or lawyer, or when they shop for a vehicle, the first
consideration is not price, it is experience and value. In the
example of buying a car, she said a price is negotiated only
after a vehicle with the necessary features has been found.
Representative Holmes suggested the same process should happen
when the state bids; once the state chooses the best company
based on qualifications, it would then negotiate for price with
that company. If that company will not give a price that is
acceptable, then the state would go to the next company on the
qualification-based list.
9:20:47 AM
CHAIR LYNN commented that the information in resumes can be
selective, and choosing from them subjective.
9:21:28 AM
REPRESENTATIVE JOHANSEN asked if the ultimate focus of the
proposed legislation is quality of work or cost savings.
REPRESENTATIVE HOLMES answered it is both.
CHAIR LYNN suggested that it is the responsibility of the state
to include its expectation for a project in its request for
proposals (RFPs).
REPRESENTATIVE HOLMES said, "That depends."
9:23:17 AM
MIKE COUMBE, Staff, Representative Lindsey Holmes, Alaska State
Legislature, on behalf of Representative Holmes, sponsor,
offered a summary of HB 239, as follows:
It requires that state funded contracts be negotiated
with the most qualified and suitable professional of
demonstrated competence, also considering proximity to
the project site. If those negotiations fail, the
state funded contractor will negotiate with the next
qualified professional, in order of ranking.
Proposals may be rejected by the state contractor.
Situations of public necessity are excluded from these
requirements. Price can be considered, as long as the
project evaluators are registered professionals. And
this does not apply to contracts incorporating both
design and construction work.
9:27:06 AM
MR. COUMBE, in response to Representative Johansen, clarified
that the bill addresses all contracts in which the state
invests.
REPRESENTATIVE JOHANSEN said if the intent is to include
anything engineered in the state, then that will raise a lot of
questions.
9:28:50 AM
REPRESENTATIVE HOLMES said she would research that issue.
9:29:01 AM
REPRESENTATIVE SEATON expressed concern about including land
surveying, because "it's done for numerous things." He directed
attention to a sentence beginning on page 1, line 6, which read
as follows:
If a contracting person procures architectural,
engineering, or land surveying services for a state-
funded contract, the contracting person shall, when
selecting the contractor, negotiate with the most
qualified and suitable professional person of
demonstrated competence to perform the services.
REPRESENTATIVE SEATON said that sounds like the RFP process
would not even be used.
REPRESENTATIVE HOLMES deferred to Mark O'Brien for an answer
regarding RFPs. She said licensing is still very important.
9:32:05 AM
REPRESENTATIVE SEATON said it does not sound like there would be
any real cost constraint, as long as negotiations are made and
there is enough money from the state for the project.
REPRESENTATIVE HOLMES responded that "this language" is the same
language as that which applies to fully state-funded projects.
She deferred again to Mark O'Brien.
9:33:41 AM
CHAIR LYNN questioned whether the system is broken and, thus,
needs to be fixed.
MS. HOLMES recommended that the committee hear from those
waiting to testify. In response to a follow-up question from
the chair, she said she does not think the proposed legislation
would either decrease or increase competition.
9:34:57 AM
REPRESENTATIVE JOHANSEN directed attention to language on page
2, lines 22-23, which read as follows:
(f) This section does not apply to a contract
that incorporates both design services and
construction.
REPRESENTATIVE JOHANSEN asked why that language is in the bill.
REPRESENTATIVE HOLMES said she believes the language aligns with
current state practice.
REPRESENTATIVE JOHANSEN indicated that within DOT&PF, there is a
movement towards "design build and cost savings."
9:36:11 AM
MR. COUMBE, in response to Representative Johansen, said the
idea for HB 239 originated from the Alaska Professional Design
Council (APDC).
9:36:40 AM
MARK O'BRIEN, Chief Contracts Officer, Contracting and Appeals,
Office of the Commissioner, Department of Transportation &
Public Facilities, offered a review of the state's selection
process. He said since the state procurement code was enacted
in 1986, the department has been using a qualification-based
selection process, which has been required for every federal-
based contract since 1972. Currently, grant recipients in state
and local governments who receive any federal aid are required
to perform a qualification-based selection. Some use price as a
factor and some do not, he said. Mr. O'Brien offered his
understanding that there are 42 states that currently have a
qualification-based selection process. Of those 42, 21
currently require what is proposed in HB 239.
9:39:44 AM
MR. O'BRIEN said in a low-price selection process, any potential
design savings may be offset by higher construction or operating
costs from a less than optimal design consideration. He relayed
that a life-cycle cost or lifespan of a building engineered is
typically about 40 years, and negotiated design fees are usually
less than 1 percent of that, while the other 99 percent fall in
the category of maintenance and operation costs. He said it can
be short-sighted to try to save money on the 1 percent, while
the other 99 percent is "expensed out over the life of the
building because additional design considerations were not taken
into effect." Mr. O'Brien said when design decisions are driven
by low price, the emphasis of the design professional changes
from being able to take advantage of the full range of design
opportunities, which may affect the efficiency of the building
over time, to having to focus solely on managing costs.
9:41:51 AM
MR. O'BRIEN, in response to a request for clarification,
explained that the purpose of HB 239 is to change the process by
which all state and local governments acquire their
architectural, land surveying, and engineering services: price
would no longer be a factor in the selection of the most
qualified firm; it becomes a factor later on. He continued as
follows:
The state, when we go out to ... acquire an architect
or an engineer, we send out a request for proposal, we
get in proposals from those interested firms, we
evaluate them ... only on their qualifications, we
take the highest ranked firm, and we enter into
negotiations for the actual scope of services that
we're trying to acquire. That's the process; and
that's the process that this bill then imposes on
local jurisdictions for state money that's handed
down. So, ... the comments that I made about low
price were relative to the process that may be going
on out there and why it may be worthwhile to consider
a qualification-based requirement.
9:45:01 AM
MR. O'BRIEN, in response to Chair Lynn, said cost containment is
a project management issue rather than a selection process.
9:46:34 AM
REPRESENTATIVE SEATON offered his understanding that the
proposed legislation would require [a contractor using state
awarded funds] to negotiate with the most qualified entities,
but would not require RFPs.
9:48:14 AM
MR. O'BRIEN said AS 36.30.270 - statute applying to architects,
engineers, and land surveyors - falls under the competitive
sealed proposal section of the procurement code. He said, "That
issue is addressed in ... procurement code and statute and
regulation for us, pointing to an RFP process in advance of
that, and that is absent from this." He noted that there is one
reference to rejection on page 2, line 7, which read, "The
contracting person may reject all or part of a proposal
submitted under this section." He said that implies that there
is a proposal process.
9:50:41 AM
REPRESENTATIVE KELLER said it is obvious that Mr. O'Brien has
faith in the quality selection process. He ventured, "It seems
like ... you could preclude in that process the contractor that
may, in fact, be the one that can give you the best product for
the best price." He pointed to the word "proximity" [on page 2,
line 1], and noted that the language does not specify whether
near or far is better. He expressed concern that "using
criteria like that could ... prevent you from cost containment
in step two."
9:52:10 AM
MR. O'BRIEN said a professional's experience and ability to
provide a desired design is not necessarily tied to that
professional's hourly price. He explained that a firm with a
higher hourly rate may have done so many iterations of a project
that it is more time efficient in carrying out the project than
a firm with a lower hourly rate that has not had the same
experience. He continued:
Does price tell you how much you're going to get in
terms of value from that contractor? And for a
professional, I would argue no. It's the same reason
you wouldn't select a doctor by price, you wouldn't
select an attorney by price. There are factors other
than that that are more important in terms of their
qualifications and their ability to perform for you
the product that you're looking for.
9:54:00 AM
REPRESENTATIVE JOHANSEN offered his understanding that Mr.
O'Brien said this process already takes place when federal money
is being used. He asked, "We're just talking about strictly
state money and some other source, and not federal money, is
that correct?"
MR. O'BRIEN answered that is correct.
REPRESENTATIVE JOHANSEN asked, "Would it be fair to say that ...
most every project we do has some sort of federal money
involved, and that all of those are already under this umbrella,
[vis-à-vis] this language?"
MR. O'BRIEN said that is correct.
REPRESENTATIVE JOHANSEN gave an example of a $10 million dollar
library project taking place in Ketchikan, using a local $5
million municipal bond and a state appropriation for $5 million,
and asked if, under HB 239, "we would be able to do the project
under these statutes."
MR. O'BRIEN replied that if HB 239 passes and that project is
partially state funded, then he believes the answer is yes. He
said he would have to read the law to recollect whether the
distinction is partially or fully state funded.
9:55:59 AM
REPRESENTATIVE JOHANSEN questioned whether municipalities and
local entities have the expertise, time, and energy to "go
through this process."
MR. O'BRIEN responded, "If they're currently receiving any
federal aid funds - directly or passed through to the state -
they're already doing it."
9:56:47 AM
KATHIE WASSERMAN, Legislative Director, Alaska Municipal League,
said AML members discussed HB 239 at AML's legislative
conference last month and no one could figure out what the
problem was that necessitated the proposed legislation. She
said she has never heard that the procurement rules are an
issue. She said a few years ago, when she was the mayor of
Pelican, Alaska, the state turned over its harbors to the
municipalities, and the amount of money she received to restore
Pelican's harbor was very small. She said that "it's all about
money," and to not be able to make decisions based on cost would
"tie up everything." She mentioned the proximity requirement
under HB 239, and she said although she agrees with the bill
sponsor that she would not necessarily choose a doctor based on
cost, she said proximity would not enter into her decision
either; she would fly to Seattle to see a doctor if she had to
do so. Conversely, she said she would consider cost when buying
a vehicle. She said as former mayor she has received federal
money many times, but has never gone through the process
described by "the gentleman from DOT." She expressed doubt that
what works for DOT will also work for small communities that are
doing all they can with few resources.
9:59:40 AM
MS. WASSERMAN, in response to Representative Johansen, said she
does not remember ever going through an RFP process any
differently with federal money than with state money. In
response to Representative Seaton, she offered her understanding
that most municipalities have a set amount under their
ordinances under which they do not require RFPs, but that amount
is usually very small. She reemphasized the relationship
between a low budget and consideration of cost. In response to
a follow-up question, she stated her belief that AML's problem
with HB 239 is that it does not believe there is a need for it.
10:02:07 AM
REPRESENTATIVE JOHANSEN encouraged Ms. Wasserman to speak with
the other municipalities about considerations of larger versus
smaller communities.
10:03:45 AM
CHAIR LYNN noted that there were several people left to testify,
with no time left.
10:04:14 AM
CHAIR LYNN announced that HB 239 was held over.
10:04:52 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 10:05
a.m.