Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/31/2011 02:00 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Note Meeting Time Change --
+ Governor's Appointments TELECONFERENCED
+ HB 119 AIDEA: PROCUREMENT; PROJECTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled, including: TELECONFERENCED
+= SB 40 USE OF RECORDED MESSAGES TELECONFERENCED
Moved CSSB 40(L&C) Out of Committee
+= SB 51 STATE VENDING LICENSES TELECONFERENCED
Moved CSSSSB 51(L&C) Out of Committee
+= SB 32 APPROP: ALTERNATIVE ENERGY REV. LOAN FUND TELECONFERENCED
Moved SB 32 Out of Committee
+= HB 13 WORKERS' COMPENSATION: MEDICAL FEES TELECONFERENCED
Moved HB 13 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 31, 2011                                                                                         
                           2:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Dennis Egan, Chair                                                                                                      
Senator Linda Menard                                                                                                            
Senator Bettye Davis                                                                                                            
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Joe Paskvan, Vice Chair                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 51                                                                                                              
"An  Act  relating to  the  operation  of vending  facilities  on                                                               
public property."                                                                                                               
                                                                                                                                
     - MOVED CSSSSB  51(L&C) OUT OF COMMITTEE                                                                                   
                                                                                                                                
SENATE BILL NO. 40                                                                                                              
"An Act prohibiting certain automated telephone solicitations."                                                                 
                                                                                                                                
     - MOVED CSSB  40(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 32                                                                                                              
"An  Act  making  a  special   appropriation  to  capitalize  the                                                               
alternative  energy revolving  loan  fund; and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED SB  32 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 13                                                                                                               
"An Act  relating to  fees and charges  for medical  treatment or                                                               
services as  they relate to workers'  compensation; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED HB  13 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 119(EDT)                                                                                
"An  Act  relating  to the  procurement  of  supplies,  services,                                                               
professional   services,   and   construction  for   the   Alaska                                                               
Industrial  Development and  Export  Authority;  relating to  the                                                               
definition  of  'own'  for   the  economic  development  account;                                                               
relating to  the definitions  of 'development  project', 'plant',                                                               
'facility', and  'project' for the Alaska  Industrial Development                                                               
and  Export   Authority;  relating   to  the   Alaska  Industrial                                                               
Development and Export  Authority creating subsidiaries regarding                                                               
projects  financed  under  AS 44.88.172;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  51                                                                                                                  
SHORT TITLE: STATE VENDING LICENSES                                                                                             
SPONSOR(s): SENATOR(s) DAVIS                                                                                                    
                                                                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       L&C, FIN                                                                                               
02/16/11       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/16/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/11       (S)       L&C, FIN                                                                                               
03/08/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/08/11       (S)       Heard & Held                                                                                           
03/08/11       (S)       MINUTE(L&C)                                                                                            
03/31/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  40                                                                                                                  
SHORT TITLE: USE OF RECORDED MESSAGES                                                                                           
SPONSOR(s): SENATOR(s) MEYER                                                                                                    
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/14/11                                                                               
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       L&C, JUD                                                                                               
03/15/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/15/11       (S)       Heard & Held                                                                                           
03/15/11       (S)       MINUTE(L&C)                                                                                            
03/31/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  32                                                                                                                  
SHORT TITLE: APPROP: ALTERNATIVE ENERGY REV. LOAN FUND                                                                          
SPONSOR(s): SENATOR(s) WIELECHOWSKI, MCGUIRE                                                                                    
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/14/11                                                                               
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       L&C, FIN                                                                                               
01/19/11       (S)       L&C RPT RECD W/CS AWAIT TRANSMITTAL NXT                                                                
03/24/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/24/11       (S)       Heard & Held                                                                                           
03/24/11       (S)       MINUTE(L&C)                                                                                            
03/31/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  13                                                                                                                  
SHORT TITLE: WORKERS' COMPENSATION: MEDICAL FEES                                                                                
SPONSOR(s): REPRESENTATIVE(s) OLSON                                                                                             
                                                                                                                                
01/18/11       (H)       PREFILE RELEASED 1/7/11                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       L&C, FIN                                                                                               
02/11/11       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/11/11       (H)       Moved Out of Committee                                                                                 
02/11/11       (H)       MINUTE(L&C)                                                                                            
02/14/11       (H)       L&C RPT 6DP                                                                                            
02/14/11       (H)       DP: THOMPSON, SADDLER, JOHNSON, HOLMES,                                                                
                         MILLER, OLSON                                                                                          
03/08/11       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/08/11       (H)       Moved Out of Committee                                                                                 
03/08/11       (H)       MINUTE(FIN)                                                                                            
03/09/11       (H)       FIN RPT 11DP                                                                                           
03/09/11       (H)       DP: FAIRCLOUGH, T.WILSON, GUTTENBERG,                                                                  
                         JOULE, GARA, NEUMAN, COSTELLO, EDGMON,                                                                 
03/09/11       (H)       DOOGAN, STOLTZE, THOMAS                                                                                
03/18/11       (H)       TRANSMITTED TO (S)                                                                                     
03/18/11       (H)       VERSION: HB  13                                                                                        
03/21/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/21/11       (S)       L&C, FIN                                                                                               
03/29/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/29/11       (S)       Heard & Held                                                                                           
03/29/11       (S)       MINUTE(L&C)                                                                                            
03/31/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 119                                                                                                                  
SHORT TITLE: AIDEA: PROCUREMENT; PROJECTS                                                                                       
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/24/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/11       (H)       EDT, FIN                                                                                               
02/03/11       (H)       EDT AT 10:15 AM BARNES 124                                                                             
02/03/11       (H)       Heard & Held                                                                                           
02/03/11       (H)       MINUTE(EDT)                                                                                            
02/08/11       (H)       EDT AT 10:15 AM BARNES 124                                                                             
02/08/11       (H)       Moved CSHB 119(EDT) Out of Committee                                                                   
02/08/11       (H)       MINUTE(EDT)                                                                                            
02/11/11       (H)       EDT RPT CS(EDT) NT 4DP 3NR                                                                             
02/11/11       (H)       DP: THOMPSON, MUNOZ, OLSON, FOSTER                                                                     
02/11/11       (H)       NR: GARDNER, TUCK, HERRON                                                                              
02/22/11       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/22/11       (H)       Moved CSHB 119(EDT) Out of Committee                                                                   
02/22/11       (H)       MINUTE(FIN)                                                                                            
02/23/11       (H)       FIN RPT CS(EDT) NT 4DP 6NR 1AM                                                                         
02/23/11       (H)       DP: FAIRCLOUGH, NEUMAN, JOULE, COSTELLO                                                                
02/23/11       (H)       NR:   T.WILSON,    GUTTENBERG,   EDGMON,                                                               
                         DOOGAN, STOLTZE, THOMAS                                                                                
02/23/11       (H)       AM: GARA                                                                                               
03/23/11       (H)       BEFORE THE HOUSE                                                                                       
03/23/11       (H)       TRANSMITTED TO (S)                                                                                     
03/23/11       (H)       VERSION: CSHB 119(EDT)                                                                                 
03/25/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/11       (S)       L&C, FIN                                                                                               
03/31/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHRISTINE MARASIGAN                                                                                                             
Staff to Senator Meyer                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on the CSSB 40, version D, for the                                                              
sponsor.                                                                                                                        
                                                                                                                                
TOM OBERMEYER                                                                                                                   
Staff to Senator Davis                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained the CS to SSSB 51 for the sponsor.                                                              
                                                                                                                                
MICHELLE SYDEMAN                                                                                                                
Staff to Senator Wielechowski                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on SB 32 for the sponsor.                                                                       
                                                                                                                                
CONRAD JACKSON                                                                                                                  
Staff to Representative Olson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Offered to answer questions on HB 13 for the                                                              
sponsor.                                                                                                                        
                                                                                                                                
MARK DAVIS, Economic Development Officer                                                                                        
Alaska Industrial  and Development  and Export  Authority (AIEDA)                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED                                                                                                                          
POSITION   STATEMENT:  Explained   HB  119   on  behalf   of  the                                                             
administration.                                                                                                                 
                                                                                                                                
STACY SHUBERT, Director                                                                                                         
Government Relations and Public Affairs                                                                                         
Alaska Housing Finance Corporation (AHFC)                                                                                       
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Testified in support of amendment to HB 119.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:02:48 PM                                                                                                                    
CHAIR DENNIS EGAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order at 2:02  p.m. Present at the  call to                                                               
order were Senators Giessel, Menard, and Egan.                                                                                  
                                                                                                                                
2:03:47 PM                                                                                                                    
SENATOR DAVIS joined the committee.                                                                                             
                                                                                                                                
                SSSB  51-STATE VENDING LICENSES                                                                             
                                                                                                                                
2:03:57 PM                                                                                                                    
CHAIR  EGAN announced  SSSB 51  to be  up for  consideration, and                                                               
then delayed it until staff returned.                                                                                           
                                                                                                                                
                SB  40-USE OF RECORDED MESSAGES                                                                             
                                                                                                                                
2:04:39 PM                                                                                                                    
CHAIR EGAN announced SB 40 to be up for consideration.                                                                          
                                                                                                                                
SENATOR MENARD moved to adopt CSSB 40( ), labeled 27-LS0374\D.                                                                  
                                                                                                                                
CHAIR EGAN objected for discussion purposes.                                                                                    
                                                                                                                                
CHRISTINE  MARASIGAN,  staff  to Senator  Meyer,  explained  that                                                               
number  (4)(A)-(E)  on page  2,  lines  3-11  of version  I  were                                                               
eliminated  in version  D.  The  reason for  the  change is  that                                                               
during  the last  committee  hearing the  ACLU  pointed out  that                                                               
certain types  of speech were  either favored or  disfavored, and                                                               
eliminating  (A)  through  (E)  is   saying  that  all  of  these                                                               
robocalls  will  be  treated  the   same  under  this  particular                                                               
section.                                                                                                                        
                                                                                                                                
They then  changed exemptions later  on in  section 4 on  page 3,                                                               
lines 3-6, to include utility  companies and any group with which                                                               
there is  a membership.  This issue  was brought  to them  by the                                                               
AFLCIO who  pointed out  that union  members like  to be  able to                                                               
communicate with membership using robocalls.                                                                                    
                                                                                                                                
There  were a  few  other technical  fixes  with renumbering  for                                                               
conformity.                                                                                                                     
                                                                                                                                
CHAIR EGAN  removed his  objection and version  D was  before the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR MENARD moved  to report CSSB 40(  ), labeled 27-LS0374\D,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s). There were no objections and it was so ordered.                                                                 
                                                                                                                                
2:08:52 PM                                                                                                                    
At ease from 2:08:52 PM to 2:10:24 PM.                                                                                          
                                                                                                                                
                SSSB  51-STATE VENDING LICENSES                                                                             
                                                                                                                                
2:10:24 PM                                                                                                                    
CHAIR EGAN  moved back up the  calendar and announced SSSB  51 to                                                               
be up for consideration.                                                                                                        
                                                                                                                                
SENATOR DAVIS, sponsor  of SSSB 51, said they had  heard the bill                                                               
before  but  a new  committee  substitute  (CS) was  before  them                                                               
labeled CSSSSB 51 ( ) 27-LS0079\B.                                                                                              
                                                                                                                                
TOM  OBERMEYER,  staff to  Senator  Davis,  sponsor of  SSSB  51,                                                               
explained that  language in the  sponsor substitute  was returned                                                               
to  that of  the original  draft in  the CS  removing the  recent                                                               
inclusion of municipal  and school property in  the definition of                                                               
"public property" that is in  existing statute. It was determined                                                               
after  diligent  inquiry  that  including  municipal  and  school                                                               
property,  particularly  school  property, would  greatly  reduce                                                               
revenues  needed   in  school   programs  supported   by  vending                                                               
revenues.  The intent  of SB  51 and  the language  in the  CS is                                                               
still  to give  statutory  priority in  vending  licenses to  the                                                               
blind  in   state  and  federal   buildings  under   the  current                                                               
definition of "public property" which  is managed by the business                                                               
enterprise program in the  Division of Vocational Rehabilitation,                                                               
Department of Labor and Workforce  Development (DOLWD). There was                                                               
no intention in the previous  draft to reduce needed revenues and                                                               
programs in the state school districts.                                                                                         
                                                                                                                                
CHAIR EGAN objected for questions.                                                                                              
                                                                                                                                
SENATOR  DAVIS relayed  that  the  bill is  the  same except  for                                                               
removal of the one section.                                                                                                     
                                                                                                                                
CHAIR EGAN removed his objection.                                                                                               
                                                                                                                                
2:12:02 PM                                                                                                                    
SENATOR MENARD moved  to report [CSSSSB 51 (  ) 27-LS0079\B] from                                                               
committee with  individual recommendations and zero  fiscal note.                                                               
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
2:14:41 PM                                                                                                                    
At ease from 2:14 PM to 2:16 PM.                                                                                                
                                                                                                                                
        SB  32-APPROP: ALTERNATIVE ENERGY REV. LOAN FUND                                                                    
                                                                                                                                
2:16:19 PM                                                                                                                    
CHAIR EGAN announced SB 32 to be up for consideration.                                                                          
                                                                                                                                
2:16:42 PM                                                                                                                    
MICHELLE SYDEMAN,  staff to Senator  Wielechowski, sponsor  of SB                                                               
32, said this bill fulfills a  promise made in last years' Senate                                                               
Energy  Omnibus bill,  which passed  unanimously in  both houses.                                                               
That  bill  authorized  a  new  loan  program  that  would  serve                                                               
businesses and non-profits in the  state that are struggling with                                                               
the same  high energy costs that  everyone else is. She  said the                                                               
legislature has  done a fabulous  job of providing  assistance to                                                               
home owners, schools, cities, the  University and state agencies,                                                               
but to  date there have not  been any programs developed  for the                                                               
non-profit community  or businesses. She  recalled "breathtaking"                                                               
testimony  from  a  young  woman  representing  a  consortium  of                                                               
churches  who  referred to  a  church  in  Fairbanks that  had  a                                                               
$13,000  energy bill  last year  and a  congregation of  just 100                                                               
individuals -  exemplifying the need.  They also heard  from five                                                               
business  owners  and had  letters  from  32 additional  business                                                               
owners urging the committee to move this legislation along.                                                                     
                                                                                                                                
SENATOR  MENARD  moved  to  report  SB  32  from  committee  with                                                               
individual recommendations.  There were  no objections and it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
2:18:46 PM                                                                                                                    
At ease from 2:18:46 PM to 2:20:11 PM.                                                                                          
                                                                                                                                
           HB  13-WORKERS' COMPENSATION: MEDICAL FEES                                                                       
                                                                                                                                
2:20:11 PM                                                                                                                    
CHAIR EGAN announced HB 13 to be up for consideration.                                                                          
                                                                                                                                
CONRAD JACKSON, staff to Representative  Olson, sponsor of HB 13,                                                               
offered to answer questions.                                                                                                    
                                                                                                                                
CHAIR EGAN found no questions and removed his objection.                                                                        
                                                                                                                                
SENATOR  MENARD  moved  to  report  HB  13  from  committee  with                                                               
individual recommendations  and attached fiscal note.  There were                                                               
no objections and it was so ordered.                                                                                            
                                                                                                                                
2:21:45 PM                                                                                                                    
At ease from 2:21:45 PM to 2:23:07 PM.                                                                                          
                                                                                                                                
              HB 119-AIDEA: PROCUREMENT; PROJECTS                                                                           
                                                                                                                                
2:23:07 PM                                                                                                                    
CHAIR  EGAN announced  HB 119  to be  up for  consideration [CSHB                                                               
119(EDT), version 27-GH1745\M, was  before the committee]. It was                                                               
introduced   by  the   House   Special   Committee  on   economic                                                               
Development, Trade,  and Tourism by  request of the  Governor. He                                                               
said it was being presented by the administration.                                                                              
                                                                                                                                
MARK DAVIS,  Economic Development Officer, Alaska  Industrial and                                                               
Development   and  Export   Authority   (AIEDA),  Department   of                                                               
Commerce, Community  and Economic Development  (DCCED), explained                                                               
that this  bill provides  for expansion of  the type  of projects                                                               
that AIDEA can currently finance.  Presently, AIDEA is authorized                                                               
to provide financing for  natural resource development, industry,                                                               
tourism  infrastructure and  energy. Those  four categories  have                                                               
not been  changed since 1993 and  one major purpose of  this bill                                                               
is the  modernization and clarification  of some of  the projects                                                               
AIDEA  could now  engage in.  Without  the changes  in CSHB  119,                                                               
AIDEA could  not finance new  sectors of the Alaska  economy such                                                               
as  communications or  health care.  Additionally,  AIDEA is  now                                                               
prevented   from   providing   financial  support   for   federal                                                               
facilities  and they  cannot support  the military  or the  Coast                                                               
Guard in their endeavor to build  new facilities in the state. In                                                               
the last year, AIDEA has been  approached by a health care clinic                                                               
in rural  Alaska and by the  U.S. Coast Guard; in  both instances                                                               
AIDEA approached  the Department  of Law  to see  whether current                                                               
statutes would  let them  build those  facilities and  lease them                                                               
back to the federal government,  and the answer in both instances                                                               
was no.  He said  the support  of the  military has  an important                                                               
role for economic development in Alaska.                                                                                        
                                                                                                                                
2:25:44 PM                                                                                                                    
Additionally,  he explained  that  CSHB 119  authorizes AIDEA  to                                                               
better create  public/private partnerships  or what  are commonly                                                               
known as  PPPs; it  does so  by permitting  the Authority  to own                                                               
part of  a project through the  use of a limited  liability (LLC)                                                               
company or  through a corporation.  The reason is as  they worked                                                               
with  private  developers  over  the last  year  they  have  been                                                               
approached several times with the idea  of AIDEA owning part of a                                                               
project,  which they  are  allowed to  do by  statute,  not in  a                                                               
partnership  but through  an  LLC. That  is  based on  liability,                                                               
insurance and  financing issues unfortunately, because  they were                                                               
also advised by the Department  of Law that presently they cannot                                                               
be a member of  an LLC. The bill seeks to change  that, so in the                                                               
future they can  own part of a project through  an LLC that would                                                               
also let  them divest of  that investment more rapidly  once that                                                               
project  was  in  good  enough   shape  to  go  entirely  to  the                                                               
predecessor. This is  one major of goal of  AIDEA's new strategic                                                               
plan -  to hold things  for only a period  of time, have  an exit                                                               
strategy and get some backing in the private sector.                                                                            
                                                                                                                                
Another  portion  of  CSHB  119   lets  AIDEA  create  subsidiary                                                               
corporations. The  purpose of letting  AIDEA create  a subsidiary                                                               
is that  it could  own a project,  particular one  developing new                                                               
technology, and  the AIDEA board  would be allowed to  grant that                                                               
subsidiary  the  powers to  own  a  project  or to  have  bonding                                                               
authority, whatever is  needed to get it going; but  should it be                                                               
successful, it would  be their intent to spin  off the subsidiary                                                               
corporation back into the private sector  as soon as it is ready.                                                               
A subsidiary corporation  is an excellent way to  sell a project,                                                               
because  it can  be done  through selling  shares rather  than an                                                               
asset sale.                                                                                                                     
                                                                                                                                
The other thing  CSHB 119 does is it allows  AIDEA to develop its                                                               
own  procurement regulations.  At  present, it  doesn't have  any                                                               
procurement  regulations;  they  are   under  the  Department  of                                                               
Administration for the procurement  of services and equipment and                                                               
under the Department of Transportation  and Public Facilities for                                                               
construction.  There   are  certain   exemptions  in   the  AIDEA                                                               
statutes,  for example  the Healy  Clean Coal  Plant is  entirely                                                               
exempt  from the  Procurement  Code. Mr.  Davis  said they  would                                                               
prefer to be  under a single set of  regulations for procurement.                                                               
In that  regard, they have the  support of Vern Jones,  the chief                                                               
procurement  officer for  the  Department  of Administration  and                                                               
Mark O'Brien, the  chief contracts officer for  the Department of                                                               
Transportation  and Public  Facilities. Both  of those  gentlemen                                                               
who have oversight  over AIDEA think this is a  better way to go.                                                               
This provision,  which is an  amendment to the  Procurement Code,                                                               
is identical to  the authority now granted to  the Alaska Housing                                                               
Finance  Corporation (AHFC)  and  the Knik  Arm  Bridge and  Toll                                                               
Authority  (KABATA).  So, they  would  be  treated in  a  similar                                                               
fashion as other public corporations in the state.                                                                              
                                                                                                                                
Saying  that,  Mr. Davis  said  he  didn't mean  the  regulations                                                               
wouldn't  follow the  spirit of  the Procurement  Code; in  fact,                                                               
this is an amendment to it.  So, they would be required to follow                                                               
competitive  bidding  processes  and   all  the  provisions.  The                                                               
difference would be for appeals; if  it's a bid for supplies that                                                               
appeal  goes  to  the  commissioner  of  the  DOA;  if  it's  for                                                               
construction it goes  to the commissioner of DOTPF.  And at times                                                               
there  has  been  confusion  between   the  two.  Now  under  the                                                               
regulations. a  bid appeal would go  to the AIDEA board  and they                                                               
would hear  it in a  public process;  all the board  meetings are                                                               
recorded,  people are  allowed to  call in  if they  can't appear                                                               
personally. It's  a pretty  open and  transparent process  to put                                                               
forward a bid.                                                                                                                  
                                                                                                                                
2:29:45 PM                                                                                                                    
Finally, he said  there has been a proposal to  amend this by the                                                               
AHFC with  regard to their need  to create a subsidiary.  He said                                                               
he had  been authorized to  tell them that the  administration is                                                               
comfortable with the proposed amendment by the AHFC.                                                                            
                                                                                                                                
SENATOR  MENARD asked  how  thorough  he was  in  adding the  new                                                               
categories. Would  he come back  to the legislature in  two years                                                               
to ask for another category?                                                                                                    
                                                                                                                                
MR.  DAVIS replied  that that  is an  excellent question  and the                                                               
genesis  of the  amendment to  AS 44.88.909  is based  on AIDEA's                                                               
strategic  plan,   specifically  page   33,  that   working  with                                                               
consultants   and   the   public  process   (polling   businesses                                                               
throughout the  state and having  public meetings)  developed the                                                               
list  over the  course  of a  year.  It includes  transportation,                                                               
communications,     community/public      purposes,     technical                                                               
innovations, prototype, commercial  applications, or intellectual                                                               
property  or planning  a facility  used for  a federal  facility.                                                               
It's pretty  comprehensive and reflects the  actual projects that                                                               
have  been brought  in  to  AIDEA over  the  last  two years.  It                                                               
reflects the views  of both the business,  banking and government                                                               
communities.                                                                                                                    
                                                                                                                                
SENATOR MENARD said  she appreciated that this  could benefit the                                                               
state's field  of technology,  which would  be beneficial  to the                                                               
economy. She asked who makes up  the board members since he wants                                                               
to increase it from five to seven members.                                                                                      
                                                                                                                                
MR.  DAVIS replied  that the  expansion  of the  AIDEA board  was                                                               
passed by  the legislature  last year, but  it has  recently been                                                               
implemented.   Previously,  it   had  three   government  members                                                               
(commissioners) and  two public  members; it  now has  two public                                                               
members - the  commissioner of DCCED and the  commissioner of DOR                                                               
- joined by five private members. It's working very well.                                                                       
                                                                                                                                
CHAIR  EGAN  asked  if  he  wanted to  talk  about  the  proposed                                                               
amendment.                                                                                                                      
                                                                                                                                
MR. DAVIS deferred to Ms. Shubert.                                                                                              
                                                                                                                                
2:33:54 PM                                                                                                                    
STACY   SHUBERT,  Director,   Government  Relations   and  Public                                                               
Affairs, Alaska Housing Finance  Corporation (AHFC), thanked them                                                               
for  the opportunity  for  introducing  the conceptual  amendment                                                               
that would allow  for AHFC to create a  subsidiary corporation as                                                               
well. Currently,  more than 7,000  families are on the  wait list                                                               
for AHFC rental assistance statewide,  clearly a difficult issue.                                                               
AHFC's mission  is to  provide Alaskans  access to  safe, quality                                                               
and affordable  housing. Currently, they  are unable to  become a                                                               
development  partner with  private entities  in the  acquisition,                                                               
creation  and   development  of   affordable  housing   and  they                                                               
understand that  nearly $4 million  is available  through federal                                                               
funds.  With the  creation of  a subsidiary  corporation such  as                                                               
this,  that could  be leveraged  to create  additional affordable                                                               
housing  in  Alaska.  That  is   what  they  hope  the  amendment                                                               
accomplishes.                                                                                                                   
                                                                                                                                
CHAIR EGAN  thanked everyone for  their comments and said  HB 119                                                               
would be held for the amendment to be added.                                                                                    
                                                                                                                                
2:35:39 PM                                                                                                                    
Finding no further  business to come before  the committee, Chair                                                               
Egan adjourned the meeting at 2:35 p.m.                                                                                         

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