Legislature(1993 - 1994)

03/17/1993 09:10 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                 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                                                         
                                                                               
  ALSO 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                 
  auditor.                                                                     
                                                                               
  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
  23.                                                                          
                                                                               
  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 CSSB  128(STA).  There were no                 
  objections and it was so ordered.                                            
                                                                               
  RANDY WELKER, Legislative Auditor, said the State Affairs CS                 
  makes one change on  page 2, line 3 by  inserting "executive                 
  branch" so it was clear the  Office of Management and Budget                 
  had   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(STA) 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 CSSB  129(STA).  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                 
  determination."                                                              
                                                                               
  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  whim.  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  CSSB 129(STA) from  committee                 
  with individual recommendations.   There were no  objections                 
  and it was so ordered.                                                       
  Number 265                                                                   
  SENATOR  LEMAN  announced  SJR  23  (LEGISLATIVE   AUDITOR'S                 
  POWERS) 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 CHRISTIANSON, Office  of the Governor, 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 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 they would  discuss this resolution at a                 
  future time and adjourned the meeting at 9:40 a.m.                           
                                                                               

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