Legislature(1993 - 1994)

04/17/1993 09:17 AM SSA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                 SENATE STATE AFFAIRS COMMITTEE                                
                         March 17, 1993                                        
                            9:10 a.m.                                          
  MEMBERS PRESENT                                                              
  Senator Loren Leman, Chairman                                                
  Senator Mike Miller, Vice Chairman                                           
  Senator Robin Taylor                                                         
  Senator Jim Duncan                                                           
  MEMBERS ABSENT                                                               
  Senator Johnny Ellis                                                         
  OTHER MEMBERS PRESENT                                                        
  SENATOR RANDY PHILLIPS                                                       
  COMMITTEE CALENDAR                                                           
  SENATE BILL NO. 128                                                          
  "An Act relating to legislative audits."                                     
  SENATE BILL NO. 129                                                          
  "An Act relating to the state's chief procurement officer."                  
  SENATE JOINT RESOLUTION NO. 23                                               
  Proposing amendments  to the  Constitution of  the State  of                 
  Alaska relating to the powers and duties of the  legislative                 
  PREVIOUS SENATE COMMITTEE ACTION                                             
  SB 128 - See State Affairs minutes dated 3/10/93.                            
  SB 129 - See State Affairs minutes dated 3/3/93.                             
  SJR 23 - No previous action to record.                                       
  WITNESS REGISTER                                                             
  Randy Welker, Legislative Auditor                                            
  Legislative Affairs Agency                                                   
  P.O. Box 113300                                                              
  Juneau, Alaska 99811-3300                                                    
  POSITION STATEMENT:   Commented on SB  128, SB 129, and  SJR
  Dugan Petty, Director                                                        
  Division of General Services                                                 
  Department of Administration                                                 
  P.O. Box 110210                                                              
  Juneau, Alaska 99811-0210                                                    
  POSITION STATEMENT:  Commented on SB 129.                                    
  Senator Randy Phillips                                                       
  State Capitol                                                                
  Juneau, Alaska 99811-1182                                                    
  POSITION STATEMENT:  Commented on SB 129 and SJR 23.                         
  Chris Christianson, Staff Counsel                                            
  Judicial Branch                                                              
  303 K Street                                                                 
  Anchorage, Alaska 99501-2084                                                 
  POSITION STATEMENT:  Commented on SJR 23.                                    
  ACTION NARRATIVE                                                             
  TAPE 93-20, SIDE A                                                           
  Number 001                                                                   
  Chairman  Leman called  the Senate  State Affairs  Committee                 
  meeting  to  order  at  9:10   a.m.  and  announced  SB  128                 
  LEGISLATIVE AUDITS to be up for consideration.                               
  SENATOR MILLER moved  to adopt the CS to SB 128.  There were                 
  no objections and it was so ordered.                                         
  RANDY WELKER,  Legislative Auditor,  said the  CS makes  one                 
  change on page 2, line 3  by inserting "executive branch" so                 
  it was clear  the Office  of Management and  Budget did  not                 
  have   authority   to   direct   implementation   of   audit                 
  recommendations to the judicial branch.                                      
  SENATOR TAYLOR commented that  he didn't see the reason  for                 
  putting something  into statute  when it  was the  Executive                 
  branch's duty, anyhow.  MR. WELKER explained SB 128 required                 
  Legislative Audit to report their progress to the Budget and                 
  Audit Committee.                                                             
  SENATOR TAYLOR  moved to pass  CSSB 128 from  committee with                 
  individual recommendations.  There were no objections and it                 
  was so ordered.                                                              
  Number 92                                                                    
  SENATOR LEMAN announced  SB 129 POWERS OF  CHIEF PROCUREMENT                 
  OFFICER to be up for consideration.                                          
  SENATOR MILLER moved  to adopt the CS to SB 129.  There were                 
  no objections and it was so ordered.                                         
  MR.  WELKER  again   testified.    He  said   the  committee                 
  substitute   deletes   a   blanket  reference   saying   the                 
  responsibilities of the chief procurement officer may not be                 
  delegated, because  there are certain  responsibilities that                 
  are  appropriate to delegate.   Section 3  provides for some                 
  professional services  to fall  under the small  procurement                 
  statutes  as  do  other  types  of  purchases.    Section  5                 
  distinguishes emergency procurements  from others.  Sections                 
  7, 8, 9, and 10 were recommended by the Administration.                      
  SENATOR RANDY PHILLIPS  explained Section  4 allows for  the                 
  delegation   of   authority   for   small  procurements   of                 
  professional services.                                                       
  Number 168                                                                   
  DUGAN PETTY,  Director, Division  of General  Services, said                 
  currently the statute prohibits a cost plus a percentage  of                 
  cost contract.  They want that to continue, but he still had                 
  three areas of concern with this bill.  First, the salary of                 
  the  Chief Procurement Officer  should be  commensurate with                 
  the  duties  of  his  position.    If  the   duties  changed                 
  significantly, the range may very well increase.                             
  Second,  in Section  5, the emergency  procurements section,                 
  they  propose  language   saying,  "except  when  there   is                 
  insufficient time  for the Chief Procurement Officer's prior                 
  An independent examination  of material  facts should be  at                 
  the discretion of the Chief Procurement Officer was the last                 
  change MR. PETTY offered.                                                    
  MR. WELKER said setting the salary in statute would make the                 
  position  more independent from  political "pressures."  The                 
  purpose behind requiring an independent determination was to                 
  add  some  accountability  to  the  position  of  the  Chief                 
  Procurement Officer.                                                         
  SENATOR TAYLOR moved to  pass CS SB 129 from  committee with                 
  individual recommendations.  There were no objections and it                 
  was so ordered.                                                              
  Number 265                                                                   
  to be up for consideration.                                                  
  REPRESENTATIVE   RANDY   PHILLIPS,   sponsor,    said   that                 
  Legislative  Audit  needed  some authority  to  enforce  the                 
  recommendations of the audits.                                               
  Number 298                                                                   
  MR. WELKER  said this  resolution proposes some  substantial                 
  changes to the  constitution.  He  views this language as  a                 
  tool of last  resort in any  kind of perceived action  taken                 
  under the authority of this provision.                                       
  SENATOR RANDY PHILLIPS  added that should the  auditor abuse                 
  his  powers, he can be removed  by the legislature as a full                 
  body or by the Legislative Budget and Audit Committee.                       
  Number 338                                                                   
  SENATOR DUNCAN said instead  of putting this totally  on the                 
  legislative  auditor,  the  legislature wants  to  remain in                 
  control.  You might  allow the impoundment of funds  after a                 
  recommendation made by the  legislative auditor, approved by                 
  a majority of  the legislative  budget and audit  committee.                 
  He noted the Budget  and Audit Committee might not  meet for                 
  several months, and  a legislative  auditor could decide  in                 
  May and decide there  should be an impoundment of  funds and                 
  do it.  One individual should not have that authority.  Some                 
  check is needed on the auditor, also.                                        
  Number 379                                                                   
  CHRIS  CHRISTENSEN,  Court System,  said  he wasn't  here to                 
  oppose the bill.  He said  he was concerned that this  might                 
  upset the delicate  balance of power that  currently exists.                 
  He  anticipates when  the  auditor issues  an  order to  the                 
  Governor for impoundment, if the Governor doesn't like that,                 
  the Attorney General  would write an  opinion which says  it                 
  doesn't apply in that case.                                                  
  Number 412                                                                   
  SENATOR  DUNCAN  pointed   out  an   area  he  thought   was                 
  inconsistent where an  auditor can impound, but  the release                 
  of that impoundment order by a vote of the legislature could                 
  cause some difficulty,  because they only meet  4 months out                 
  of the year.  He didn't want to turn veto power  over to one                 
  individual who is not even an elected official.                              
  SENATOR   LEMAN  said  the   committee  would  discuss  this                 
  resolution at  a future  time and  adjourned the  meeting at                 
  10:40 p.m.                                                                   

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