Legislature(2013 - 2014)SENATE FINANCE 532
02/22/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB7 | |
| SB12 | |
| SB37 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 37 | TELECONFERENCED | |
| + | SB 17 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 12 | ||
| = | SB 7 | ||
SENATE FINANCE COMMITTEE
February 22, 2013
9:03 a.m.
9:03:22 AM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 9:03 a.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Margaret Dowling, Staff, Senator Geisel; Johanna Bales,
Department of Revenue; Laura Pierre, Staff, Senator
Fairclough; Vern Jones, Chief Procurement Officer,
Department of Administration; Kris Curtis, Chief Auditor,
Legislative Budget and Audit; Kate Burkhart, Executive
Director, Suicide Prevention Council; Bill Martin, Chair,
Suicide Prevention Council; Gretchen Nealy, Alaska Brain
Injury Network.
SUMMARY
SB 7 CORPORATE INCOME TAX
SB 7 was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal
note from the Department of Revenue.
SB 12 PUBLIC PROCUREMENT
SB 12 was REPORTED out of committee with a "do
pass" recommendation and with one previously
published zero fiscal note: FN1 (ADM).
SB 17 EXTEND SPECIAL EDUCATION SERVICE AGENCY
SB 17 was POSTPONED until the Senate Finance
Committee meeting on Monday February 25.
SB 37 EXTEND SUICIDE PREVENTION COUNCIL
SB 37 was REPORTED out of committee with a "do
pass" recommendation and with one previously
published fiscal impact note: FN 1 (DHS).
SENATE BILL NO. 7
"An Act relating to the computation of the tax on the
taxable income of a corporation derived from sources
within the state."
9:03:44 AM
Co-Chair Meyer discussed the day's agenda.
9:04:26 AM
AT EASE
9:05:03 AM
RECONVENED
Co-Chair Meyer discussed the legislation.
Senator Olson asked how the native corporations would be
affected by the legislation.
MARGARET DOWLING, STAFF, SENATOR GEISEL, stated that staff
from Department of Revenue (DOR) was present to answer
questions. She received excited responses from members of a
native corporation who had reviewed the proposed
legislation. She expected to see letters of support from
the entities regarding the legislation. She deferred
Senator Olson's question to Johanna Bales.
Senator Olson asked if email or written support from the
native entities was documented.
JOHANNA BALES, DEPARTMENT OF REVENUE, responded that the
effect on all corporations was a minor reduction in tax.
She stated that the corporations would benefit from a break
in tax.
Co-Chair Meyer understood that the intent of the bill was
to help businesses in Alaska, primarily small businesses.
Co-Chair Kelly MOVED to REPORT SB 7 out of committee with
individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 7 was REPORTED out of committee with a "do pass"
recommendation and with one new zero fiscal note from the
Department of Revenue.
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."
9:08:36 AM
Co-Chair Meyer stated that the committee heard public
testimony for SB 12.
LAURA PIERRE, STAFF, SENATOR FAIRCLOUGH, requested an
explanation of the procurement process from the Department
of Administration (DOA).
VERN JONES, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF
ADMINISTRATION, highlighted relevant information by
providing a sectional analysis of the legislation. He began
with section one, which was a technical change that
renumbered and moved a preference. Section 2 affected the
local agricultural preference making the language of the
preference consistent. He skipped to section 5, which
changed the salary range for the Chief Procurement Officer
reflecting a change in the Division of General Services as
well as the duties performed. Sections 6 - 10 included
additional technical changes on preferences including
relocation to a common section. Section 11 amended the
small procurement section. The change increased the
threshold limit for small procurements of leased space from
3,000 square feet to 7,000 square feet, consistent with
section 18.
Mr. Jones continued with section 12 of the sectional
analysis. The section clarified when Alaska business
licenses were required for formal bids and proposals. The
change required bidders to provide proof of their Alaska
business license prior to award, but required the license
at the time of bid submission in order to qualify for the
Alaska bidder preference. Section 13 omitted the vendor
lists, which was an antiquated process. The department was
implementing an automated procurement process. He skipped
to section 15, which clarified construction contractor
registration requirements, now explicitly requiring
registration before awarding a contract.
Mr. Jones continued with section 16, which clarified the
Alaska business license requirements for competitive sealed
proposals and qualification for the Alaska bidder
preference using language consistent with that used in
section 13. He skipped to section 18, which included a
substantive change amending the small procurement threshold
to $100 thousand for goods and professional services, to
$200 thousand for construction, and 7 thousand square feet
for lease of space.
9:14:52 AM
Mr. Jones continued with section 19. The section
consolidated the Alaska bidder preference, Alaska veterans'
preference, and other preferences formerly in AS
36.30.170(b). The section also clarified the requirement
for a disability preference and eliminated the "employers
of people with disabilities preference" and excluded real
estate leases from application of procurement preferences.
Section 21 clarified which preferences were cumulative, and
which may not be combined. He continued with section 23,
which moved the definition of "Alaska bidder" and added new
definitions for "in writing" and "written" to include
information in electronic form.
9:18:05 AM
Co-Chair Meyer appreciated the changes in the procurement
code. He asked about section 5. He noticed that changes
were being proposed for the testifier's position. He asked
if Mr. Jones supported of the proposed changes.
Mr. Jones responded that the Chief Procurement Officer
would no longer serve as Director of the Division of
General Services. He was the Chief Procurement Officer in
2002 and he assumed the overall responsibilities for the
division. The change coincided with plans to establish a
director position for the Division of General Services
allowing the procurement officer to focus on statewide
procurement.
9:20:03 AM
Senator Olson understood that the vendor list was
antiquated. He asked about entities without access to
computers or enough broadband to interface with the new
electronic process. He wondered how a contractor in the
bush could bid on a project without access to the internet.
He wished to level the playing field for veterans and
disabled Alaskans.
9:21:41 AM
Mr. Jones replied that a transition period was imminent. He
pointed out that the state was implementing an automated
procurement system as part of the Integrated Resource
Information System (IRIS). The system will include
resources for vendors providing them with the necessary
information. Internet access was necessary. The vendor
lists were not required, so the online public notice system
contained all posts from the division. The law required
that the division maintain the vendor lists, but they had
fallen out of use. The section also removed a requirement
that was no longer used.
9:23:32 AM
Senator Hoffman thanked the sponsor for the legislation. He
himself owned several corporations and was chairman of the
Bethel Native Corporation. He asked if the legislation
helped to streamline the cumbersome application process.
Mr. Jones responded that the changes allowed for automation
of the formal bids and procurement, which would streamline
the process. He added that implementation of IRIS would
allow businesses to submit bids by populating forms online
rather than creating Request for Proposals (RFP). He stated
that raising the small procurement thresholds would alter
business by removing barriers of complexity.
Senator Hoffman agreed that the legislation would simplify
the process for Alaska small businesses.
9:25:45 AM
Senator Bishop echoed the statements of Senator Hoffman. He
pointed out section 19, which eliminated redundancy in
disability determinations for veterans. He appreciated the
legislation's efficiency.
Co-Chair Kelly MOVED to REPORT SB 12 out of committee with
individual recommendations and the accompanying fiscal
note. 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
fiscal note: FN1 (ADM).
SENATE BILL NO. 37
"An Act extending the termination date of the
Statewide Suicide Prevention Council; and providing
for an effective date."
9:27:20 AM
Vice-Chair Fairclough introduced SB 37. She stated that she
served on Alaska's Statewide Suicide Prevention Council for
the past several years. With changes supported by the
legislature, attendance for meetings increased. The council
assembled a statewide strategic plan and was working with
partners on implementation. Public awareness, social media
and partnering with communities around Alaska were changes
proposed. She stated that Alaska had the highest rate of
suicide in the nation at nearly twice the national average.
The legislation proposed the maximum extension to 2019. She
requested the support of the committee.
9:28:52 AM
AT EASE
9:30:04 AM
RECONVENED
KRIS CURTIS, CHIEF AUDITOR, LEGISLATIVE BUDGET AND AUDIT,
stated that the agency conducted a sunset review of the
Statewide Suicide Prevention Council. The objective of the
audit was to determine whether the council was serving the
public's interest and whether they should be extended. The
conclusion of the audit was that the council did serve the
public's interest. The recommendation was to extend the
termination date six years, until June 30, 2019.
Ms. Curtis pointed out that the audit found notable
improvements made by the council since the last review of
operations in 2008. The improvements were attributed to
alignment with the Alaska Mental Health Trust (AHMT) board
and the Advisory Board on Alcoholism and Drug Abuse. The
collaboration was advantageous as suicide was often linked
with mental illness and/or drug abuse.
Ms. Curtis further explained that the audit addressed the
numerous activities undertaken by the council. One
impressive accomplishment was the development of a new
statewide suicide prevention plan. She credited the council
for outreach to the Alaska native communities and tribal
leaders. The audit recommended that the council formalize
the leadership structure through a written agreement and
evaluate the position as required by statute. The audit
included two other recommendations including monitoring of
meeting attendance by the council and developing
performance measures to support the statutory duties and
annually report progress. Both the council and the
department agreed with the recommendations.
9:33:00 AM
Senator Dunleavy asked about the increase in the budget for
travel listed on the fiscal note.
KATE BURKHART, EXECUTIVE DIRECTOR, STATEWIDE SUICIDE
PREVENTION COUNCIL, explained that she was also executive
director for the Alaska Mental Health board and the
Advisory Board on Alcoholism and Drug Abuse. She discussed
the work done by the council to respond to the audit
recommendations. She noted that the audit included three
recommendations as mentioned by Ms. Curtis. In response to
the first recommendation, the council executive committee
partnered with the executive committees of the other two
boards to conduct an evaluation of her performance last
fall. The executive committees also worked together to
memorialize the current leadership and resource sharing in
a memorandum of agreement.
Ms. Burkhart continued with the council's response to
recommendation number two. An attendance log was
implemented in July 2012, which would be provided to the
governor's office, the Senate President and the Speaker of
the House at the end of each fiscal year. She stated that
the council achieved a quorum at every regular meeting,
which heightened the ability to accomplish statutory
duties.
Ms. Burkhart discussed the final recommendation, which
addressed the council's performance measures. She mentioned
changes including the tracking of population indicators.
The indicators were listed in the state plan and would be
tracked each year. She worked with the Department of Health
and Social Services (DHSS) to translate the indicators and
performance into the Office of Management and Budget (OMB)
language. She hoped to fully comply with the recommendation
by the end of the fiscal year. She emphasized that the
auditing process provided a great benefit to the council.
9:37:31 AM
Ms. Burkhart discussed the fiscal note. Beginning in 2015,
the fiscal note showed an increase of $44,600 per year,
with $18,600 for travel. The council's travel budget did
not permit regular meetings outside of the Anchorage area.
The council felt that the lack of travel funding restricted
partnerships with rural communities and tribal
organizations. The lack of travel funding restricted the
ability to represent and learn from the people of Alaska
outside of the road system.
Ms. Burkhart pointed out that the largest number of
suicides occurred in the Anchorage area, but the highest
rates were in rural Alaska. The council wished to serve
rural Alaska better with face-to-face communication. She
clarified that the travel budget encouraged council members
to work within constraints by meeting in Anchorage.
Ms. Burkhart pointed out that the fiscal note included $20
thousand for projects. The council prioritized in the state
plan the need for Alaska-specific research on the factors
that contributed to suicide. The funding would allow the
council to seed the research with partners in the state
like the University and the Alaska Native Tribal Health
Consortium. The funding would not be used specifically for
council activities, but would allow the achievement of the
goals under strategy six of the state plan.
Ms. Burkhart mentioned an additional $8,700 for printing
costs, video conferencing, and webinar support to reflect
the increased presence of the council around the state. The
council web-published their state plan and was unable to
provide printed copies of the plan because it was cost-
prohibitive. The items on the fiscal note were listed as
statutory state responsibilities for the council as opposed
to funding for expansion.
9:41:15 AM
BILL MARTIN, CHAIR, SUICIDE PREVENTION COUNCIL, testified
in favor of the bill. He stated that he was retired and
worked with suicide prevention on local, statewide,
regional and national levels. He stated that he was
appointed to the council 10 years ago. He mentioned summits
in Juneau and Anchorage that allowed community members to
share ideas. He pointed out changes in advocacy regarding
suicide prevention. Tribes and communities were able to
talk about suicide and prevention in their regions, which
had been a difficult subject to broach. He stated that he
planned to travel to Nenana to speak with school children
in communities about suicide.
Mr. Martin noted the high rate of suicide with the elders
in the United States. He pointed out that the higher rates
of suicide in Alaska were seen with the young people. He
wanted to find the reasons. The high suicide rates for
younger Alaskans were in existence for only 40 years. He
commented on his upbringing where the elders took great
responsibility in the upbringing of the children. He
explained that the native people were very sensitive, who
could be hurt very easily. Young people were especially
vulnerable and required support and guidance about certain
aspects of growing up. He spoke about certain aspects of
Alaskan native culture that had grown obsolete such as
skill sharing or sane fishing. He hoped that the travel
funding would allow members of the community to visit rural
areas to provide the needed communication. The council had
developed a multitude of ideas to prevent suicide in the
state.
9:47:24 AM
Senator Olson asked if council members could "call in" a
vote, or were they required to be present at the meeting.
Ms. Burkhart replied that the bylaws permitted a telephonic
full participation and vote.
9:48:07 AM
Vice-Chair Fairclough commented that the bill could be
moved out of committee, but time for testimony had become
limited.
GRETCHEN NEALY, ALASKA BRAIN INJURY NETWORK, stated that
she worked to help survivors of trauma from the traumatic
brain injury. Prior to her position she served nine years
for the Alaska Joint Force Headquarters for the National
Guard and oversaw the suicide prevention program. She
understood the need for funding to allow for travel to
rural areas.
Co-Chair Meyer stated that the bill was very important.
Co-Chair Meyer closed public testimony.
9:50:37 AM
Co-Chair Kelly MOVED to REPORT SB 37 out of committee with
individual recommendations and the accompanying fiscal
note(s). There being NO OBJECTION, it was so ordered.
SB 37 was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
impact note: FN 1 (DHS).
SENATE BILL NO. 17
"An Act extending the special education service
agency; and providing for an effective date."
SB 17 was POSTPONED until the Senate Finance Committee
meeting on Monday February 25.
9:51:57 AM
ADJOURNMENT
The meeting was adjourned at 9:52 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 37 Sponsor Statement.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 37 |
| SB 17-SESA_LegAudit_Report.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_Powerpoint.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_Sectional.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_SponsorStatement_VersionC.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_Supporting_VersionC_RepealLanguage.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_SupportLetters.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| SB 17-SESA_WhitePaper.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |
| 02212013_SB17_SESA_SupportLetters_ToDate.pdf |
SFIN 2/22/2013 9:00:00 AM |
SB 17 |