HOUSE FINANCE COMMITTEE March 17, 2008 2:21 p.m. CALL TO ORDER Co-Chair Meyer called the House Finance Committee meeting to order at 2:21:49 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Harry Crawford Representative Les Gara Representative Mike Hawker Representative Reggie Joule Representative Mike Kelly Representative Mary Nelson Representative Bill Thomas Jr. MEMBERS ABSENT ALSO PRESENT Kevin Brooks, Deputy Commissioner, Department of Administration; Suzanne Armstrong, Staff, Representative Kevin Meyer; Representative John Coghill; Representative Bob Lynn; Representative Max Gruenberg; Representative Anna Fairclough; Vern Jones, Chief Procurement Officer, Department of Administration; Wayne Stevens, President, Alaska State Chamber of Commerce. PRESENT VIA TELECONFERENCE Chaz Simmons, Sales Manager, Service Business Printing, Anchorage; Kerry Noblin, Peninsula Printing, Kenai. SUMMARY HB 236 An Act relating to providing a death certificate for a deceased veteran without cost; relating to a program to honor the memory of a deceased veteran; and providing for an effective date. CS HB 236 (MLV) was REPORTED out of Committee with a "do pass" recommendation and with attached new fiscal note by the Department of Military and Veterans Affairs and new fiscal note by the Department of Health and Social Services. HB 255 An Act relating to dual sentencing of certain juvenile offenders; amending Rule 24.1, Alaska Delinquency Rules; and providing for an effective date. HB 255 was SCHEDULED but not HEARD. HB 348 An Act relating to the adoption of regulations by the Board of Fisheries and the Board of Game. CS SS HB 348 (FIN) was REPORTED out of Committee with "no recommendation" and attached fiscal note #2 by the Department of Law and new zero fiscal note by the Department of Fish and Game. HB 364 An Act relating to notice and consent for a minor's abortion; relating to penalties for performing an abortion; relating to a judicial bypass procedure for an abortion; relating to coercion of a minor to have an abortion; relating to reporting of abortions performed on minors; amending Rule 24(a), Alaska Rules of Civil Procedure, amending Rule 220, Alaska Rules of Appellate Procedure, and Rule 20, Alaska Probate Rules, relating to judicial bypass for an abortion; and providing for an effective date. CS HB 364 (FIN) was REPORTED out of Committee with individual recommendations and attached zero fiscal note #1 by the Department of Health and Social Services, new zero fiscal note by the Department of Administration, new indeterminate fiscal note by the Department of Law, and new zero fiscal note by the Alaska Court System. HB 406 An Act relating to a requirement for competitive bidding on contracts for the preparation of election ballots. CS HB 406 (STA) was REPORTED out of Committee with a "do pass" recommendation and with attached zero fiscal note #1 by the Office of the Governor. HB 417 An Act relating to the compensation for certain public officials, officers, and employees not covered by collective bargaining agreements; relating to pay increments for longevity in state service; and providing for an effective date. CSHB 417(FIN) was REPORTED out of Committee with "no recommendation" and attached new fiscal note by the Alaska Court System, new fiscal note by the Legislative Affairs Agency, and new fiscal note by the Office of Management and Budget. 2:22:12 PM HOUSE BILL NO. 417 An Act relating to the compensation for certain public officials, officers, and employees not covered by collective bargaining agreements; relating to pay increments for longevity in state service; and providing for an effective date. Co-Chair Meyer reminded the Committee of the status of the bill and described the fiscal notes. Representative Gara recapped previous questions regarding employee shortages the State is facing due to the salary schedule and salary review system. He had asked Commissioner Kreitzer the conditions under which it would possible to go from step A to F in order to hire someone. 2:25:36 PM KEVIN BROOKS, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION (DOA), replied that currently there is not a mechanism for granting advanced steps based on a shortage in a job classification. Representative Gara thought the system was arcane. He thought HB 417 should be able to do something about the situation. He wanted a provision saying an employer can go between steps if needed to fill a position. Co-Chair Meyer was not sure HB 417 was the right bill for the change. Representative Gara thought the bill was the right place to change the hiring system to allow a department to exercise discretion rather than having the Legislature telling them what to pay people. Mr. Brooks acknowledged Representative Gara's point, which addressed the primary reasons for the creation of the Administrative Workgroup on Recruitment and Retention. The Department of Administration has found different impediments in the hiring system in different departments. The goal is to look at the entire system, including geographical differences, the classification system, and the pay system. The situation is complex, but the Department is committed to working through the problems. 2:29:11 PM Mr. Brooks added that there is some flexibility through using the criteria of recruitment difficulty, exceptional qualifications, or both. Recruitment difficulty is the factor that addresses shortages. Some departments are limiting themselves by doing State-only recruitments, and he worried that that limited candidate pools. Representative Gara stated that sometimes the problem is that the salary offered is inadequate, regardless of other criteria. He wanted to address the issue of the ability to pay more in those situations. Mr. Brooks promised that DOA is looking at where there is a shortage of workers, and said in those cases there is some ability to offer a higher step. 2:33:34 PM Representative Joule thought there might be two different discussions. Mr. Brooks said similar issues do exist for both union and non-union groups, but the bill addresses non- covered employees. In many cases the solutions will be the same, including adjusting pay. Co-Chair Meyer asked if there were classifications with flexibility to go above the normal grade range. Mr. Brooks replied that there were fully exempt classifications, oil and gas positions specifically, paid on salary overrides; they get paid what the market will bear. Co-Chair Meyer wondered if similar strategy could be used in the departments. Mr. Brooks replied that would mean moving classified employees to the exempt service, from union representation to non-union representation, with accompanying challenges and issues. Representative Gara turned the discussion to the non-union employee issue. He said there are still shortages. He thought a provision could be put into the bill along the lines of: "The commissioner of an agency may offer any of these step ranges if needed to fill an open position." He wanted give the agency commissioner the authority to make the decision as needed. Mr. Brooks believed that the authority already exists for non-classified, non-union, fully or partially exempt employees, where there are shortages. 2:37:54 PM Representative Gara asked if the agency could offer up to an F step if needed to fill a shortage. Mr. Brooks responded that there is nothing that simple. Criteria are set to try and maintain consistency in the pay system. The typical criteria used are recruitment difficulty, as demonstrated by a lack of qualified candidates, or exceptional qualifications, or both. Representative Kelly commented that the difficulty with making it too easy to go to an F step is that supervisors can do it for the wrong reasons and throw the whole system off. He thought it would be difficult to make such a complex change with an amendment. Co-Chair Meyer pointed out that there was not an amendment yet. 2:40:34 PM Representative Gara asked if the ability to move from an A to an F because of a shortage applied to union employees. Mr. Brooks answered that an agency can and does offer up to an F, using the same criteria. Co-Chair Chenault MOVED to REPORT CSHB 417(FIN) out of Committee with individual recommendations and attached new fiscal note by the Alaska Court System, new fiscal note by the Legislative Affairs Agency, and new fiscal note by the Office of Management and Budget. Representative Gara OBJECTED for discussion. He stated that there are major shortages and that he was very dissatisfied with the Administration's answers. He thought the attempt to keep the budget down resulted in a refusal to address the reality that many people are being underpaid. The bill will help non-union employees get pay increases as they get older and their expenses go up. The bill will not help union people if the union isn't powerful enough to get the same thing into a labor contract. He did not agree that people should be treated differently because of being union or non- union. A human being should not be left at the same salary level, especially taking into consideration cost of living changes. Representative Gara WITHDREW his OBJECTION. There being NO further OBJECTION, it was so ordered. CSHB 417(FIN) was REPORTED out of Committee with "no recommendation" and attached new fiscal note by the Alaska Court System, new fiscal note by the Legislative Affairs Agency, and new fiscal note by the Office of Management and Budget. HOUSE BILL NO. 348 An Act relating to the adoption of regulations by the Board of Fisheries and the Board of Game. 2:44:56 PM Vice-Chair Stoltze MOVED to REPORT CS SS HB 348 (FIN) out of Committee with individual recommendations and attached fiscal note #2 by the Department of Law and new zero fiscal note by the Department of Fish and Game. There being NO OBJECTION, it was so ordered. CS SS HB 348 (FIN) was REPORTED out of Committee with "no recommendation" and attached fiscal note #2 by the Department of Law and new zero fiscal note by the Department of Fish and Game. AT EASE: 2:46:40 PM RECONVENE: 2:47:19 PM HOUSE BILL NO. 364 An Act relating to notice and consent for a minor's abortion; relating to penalties for performing an abortion; relating to a judicial bypass procedure for an abortion; relating to coercion of a minor to have an abortion; relating to reporting of abortions performed on minors; amending Rule 24(a), Alaska Rules of Civil Procedure, amending Rule 220, Alaska Rules of Appellate Procedure, and Rule 20, Alaska Probate Rules, relating to judicial bypass for an abortion; and providing for an effective date. 2:47:56 PM Co-Chair Meyer reviewed the history of HB 364 in the Finance Committee. Co-Chair Meyer MOVED to ADOPT Amendment #1 (Copy on File): Page 6, line 7: After "without", Insert "Notice to or" Representative Hawker OBJECTED for discussion. SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE CO-CHAIR MEYER, explained the Amendment as a technical clean-up amendment that inserts language to make the version of the bill consistent with other draftings. Representative Hawker WITHDREW his OBJECTION. Vice-Chair Stoltze OBJECTED for discussion. REPRESENTATIVE JOHN COGHILL, Sponsor, testified that he had no objection to the Amendment. Vice-Chair Stoltze removed his OBJECTION. There being NO further OBJECTION, Amendment #1 was adopted. Representative Gara MOVED to ADOPT Amendment #2 (25- LS1406\E.1, Mischel, 3/12/08, Copy on File): Page 2, line 29: Delete "medical instability caused by a" Vice-Chair Stoltze OBJECTED. 2:50:08 PM Representative Gara turned to page 2, line 29 of the bill. He explained that the previous consent law stipulates that a person does not have to wait and get parental notice and consent if the delay in the abortion will cause the minor "substantial and irreversible impairment of a major bodily function." He thought the rule seemed reasonable. However, HB 364 adds another condition that the abortion can only be performed if the delay will cause "medical instability" caused by an irreversible impairment. Representative Gara objected to the additional language and wanted it removed through the Amendment. Representative Coghill objected to the Amendment. He pointed out that the language "medical instability" is commonly used in medical emergencies. He defines abortion as a medical emergency. The medical emergency is being determined by the doctor. He thought "medical stability" should be a factor. Representative Gara answered that not allowing an abortion could cause lasting and substantial injury to a woman. He thought the current standard was good enough. An abortion should be allowed if prevention of the abortion would cause a woman substantial and irreversible injury. The question becomes whether the additional language addresses this kind of injury. Representative Coghill answered that the fact that a delay could cause a medical instability is appropriate especially when we rely on the good faith clinical judgment of the doctor. Representative Gara did not like adopting medical terms without knowing what they mean. He wanted medical testimony to show which injuries the bill allows to be caused to a woman and which injuries are not. 2:54:11 PM Representative Coghill said the same amendment had come before another committee. There was legal testimony but none from a doctor. He clarified that the sponsors intend to define, for the purposes of this particular law, what a medical emergency is. He had not intended to line up medical testimony, although he could. Co-Chair Meyer did not think additional testimony was necessary. Vice-Chair Stoltze MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Gara, Joule, Nelson OPPOSED: Harris, Hawker, Kelly, Stoltze, Thomas, Meyer Absent from the vote: Crawford, Chenault The MOTION FAILED (3/6). 2:56:23 PM Representative Gara MOVED to ADOPT Amendment #3 (25- LS1406\E.2, Mischel, 3/12/08, Copy on File): Page 3, line 6: Delete "not less than 48 hours" Vice-Chair Stoltze OBJECTED. Representative Gara turned to page 3, line 6 of the bill. The way the bill is written, if a young woman gives the parents notice and gets parental consent to have an abortion, she still cannot have an abortion without a 48- hour wait. He thought it was not appropriate to have to wait 48 hours. There is no other major medical procedure where a mandatory wait applies. He referred to earlier testimony that it sometimes takes up to ten weeks for a young woman to find out she is pregnant. By then the first trimester is nearly over, and there is no place to get a second-trimester abortion in Alaska. He described a scenario of a young woman trying to make the decisions who has to go to the court, the doctor's office and so on. Even after all that, she has to wait another 48 hours. This tells women who have the legal right to have an abortion that they are not allowed to have one because of a deadline. He asserted that the bill would be deemed unconstitutional and that it was not right. Representative Coghill spoke against the Amendment. He thought two days' notification to the minor's custodian was reasonable. He wanted to have notice in case a person was trying to manipulate the system. If the words were taken out, the bill would say "notice before the abortion," which could be minutes. For other medical procedures there would be a variety of different times either for preparation or for time to get to or from the appointment. He described surgeries that he had to wait 72 hours for. Representative Gara maintained that there is no similar law for men. House Bill 364 will tell a woman that, unlike a man, after a certain day, she cannot have the surgery. Men have the luxury of waiting a few extra days that women who are seeking an abortion do not have. In addition, the bill requires consent. If she has the consent of the parent, she should not have to wait another 48 hours. Representative Coghill did not know of any other place in society that jurisprudence has been so highly focused as abortion and parental consent. With regards to other procedures, few have been litigated to the same degree. Some value individual freedom highly, and others value the unborn child highly. Those two values are in tension. He believed there should be reasonable notification. He thought doctors would require at least two days of preparatory work anyway. 3:02:38 PM Representative Kelly asked if Representative Coghill had started with a higher number of hours for notification. Representative Coghill relied that he had started with 72 hours; after visiting abortion clinics he became convinced that two days was adequate. Representative Kelly spoke to the risk of terminating a human being and thought a 48 hours wait was reasonable. He would like the waiting period to be longer. Representative Gara queried if there were any procedure where a man is required to wait 48 hours after giving consent. Representative Coghill replied not by law. 3:04:22 PM Representative Gara asserted that he had an equal protection issue with the bill if men are not required to wait 48 hours before having any kind of surgery. Representative Coghill did not know of any male who had gotten an abortion. He felt men had been excluded from the choice of abortion. The equal protection issue for him is with the father of the unborn child. Representative Gara thought the 48-hour issue would divide people into people who were against abortion and people who were for the choice to have an abortion. The 48-hour notice is not medically justified. It divides people. He argued that the real purpose of the 48-hour waiting period was to decrease the chances of a woman having a valid, legal, first-trimester abortion. There is no other area of the law where this happens. That makes this bill not really about parental consent, but parental consent plus taking another shot at trying to prevent someone from getting an abortion. 3:07:08 PM Representative Coghill replied that the provision was not meant to be prohibitive, but to respect the parental right to be involved in the decision. He stated that men are parents as well as women. Representative Kelly speculated that a having vasectomy requires a cooling off period. During that period a person might get counseling in order to carefully think things through. He felt since the decision to have an abortion involved human life, the waiting period should be much longer. He referred to testimony that abortion providers make sure there is counseling so the person has to face what an abortion is. Vice-Chair Stoltze MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Gara, Joule, Nelson OPPOSED: Hawker, Kelly, Stoltz, Thomas, Harris Absent for the vote: Chenault, Crawford The MOTION FAILED (3/6). Representative Gara MOVED to ADOPT Amendment #4 (25- LS1406\E.3, Mischel, 3/13/08, Copy on File): Page 3, line 15, following "victim": Insert "or has a reasonable fear of becoming a victim"; Page 3, line 18, following "by": Insert "the minor."; Page 3, lines 19-28: Delete all material. Vice-Chair Stoltze OBJECTED. 3:10:09 PM Representative Gara described the Amendment as an attempt to address one of his major objections to the bill. He thought it was one thing telling a minor with supportive parents that she needs to talk to them before having an abortion. It was another thing to tell a minor who has been sexually or physically abused that she has to tell the parent that she is pregnant and get permission to have an abortion. The Amendment says that if a minor has reasonable fear of physical or sexual abuse, or if they have been physically or sexually abused in the past by a parent, they simply do not have to get parental consent. The way the bill reads currently, the child has to get an affidavit where the child says she will be abused, and then she has to get a witness. Representative Gara was concerned that the witness would go to the parent and inform the parent that the daughter is about to get an abortion. If the girl goes to a family member, the family member may inform the parent. If she turns to a law enforcement officer, that officer might go to the parent. Representative Gara explained that his provision makes it sufficient for the child to sign an affidavit, under penalties of perjury, and give it to the doctor. A parent who has abused a child has lost the right to regulate that child's life. Representative Coghill agreed that when a young girl is abused, she is afraid; pregnancy intensifies that fear. He explained the section as the third condition under which a doctor may perform an abortion for a minor. The others are parental consent and emancipation. If the child is abused, she is not required to go to court. The doctor can make the decision, but Representative Coghill did not want the doctor to be able to do that. He thought it would be wise to have an authority figure involved. He acknowledged that the abusive parent could find out because of that. He would rather have law enforcement, health and social services, or a safe family member involved. He does not want to delete the material and leave the decision between the doctor and the minor child because of doctors who could fall prey to the motive of making money off the abortion. 3:16:26 PM Representative Gara did not think there were doctors making a profit providing abortions. He clarified that under the Amendment, the decision is not only between the young woman and her doctor. The young woman is also required to sign an affidavit or she could go to jail for lying. He thought that was sufficient protection. Vice-Chair Stoltze MAINTAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Joule, Nelson, Gara OPPOSED: Hawker, Kelly, Stoltze, Thomas, Harris, Meyer Absent from the Vote: Crawford, Chenault The MOTION FAILED (3/6). 3:18:46 PM Representative Gara MOVED to ADOPT Amendment #5 (25- LS1406\E.4, Mischel 3/12/08, Copy on File): Page 7, line 25, following "abortion": Insert "or to bear a child"; Page 7, line 28, following "abortion": Insert "or to bear a child" Vice-Chair Stoltze OBJECTED. Representative Gara turned to page 7, line 24 which he felt creates a new crime: coercing a minor who is pregnant to have an abortion. He thought it should be a crime to coerce, defined in the bill as "to restrain or dominate a minor by force," a minor to have an abortion, but it should also be a crime to restrain or dominate a minor by force to make them bear a child. He thought coercing a child would be wrong regardless of the stance towards abortion. Representative Coghill turned to section 1 of the bill, subsection (a), which lists the exceptions to "an abortion may not be performed in this state." He pointed out that the topic at hand is whether parents should be involved in the consent for an abortion. The topic is abortion. He spoke against the Amendment, not because he thinks a child should be coerced to have a child, but because it would create a precedence in law that concerns him. 3:21:56 PM Representative Gara thought the bill as written would cause legal problems. He thought it made it all right to threaten a child if she doesn't agree to have a baby. The bill treats people different depending on what side of the pro-life/pro- choice issue they are on. Representative Gara WITHDREW Amendment #5. Co-Chair Meyer referred to fiscal notes. AT EASE: 3:24:24 PM RECONVENE: 3:26:10 PM Vice-Chair Stoltze MOVED to REPORT HB 364 out of Committee with individual recommendations and attached zero fiscal note #1 by the Department of Health and Social Services, new zero fiscal note by the Department of Administration, new indeterminate fiscal note by the Department of Law, and new zero fiscal note by the Alaska Court System. Representative Gara OBJECTED for discussion. 3:26:57 PM Representative Gara referred to a memo from the Department of Law concluding that HB 364 is likely unconstitutional. The bill is probably more restrictive than the one that was already deemed unconstitutional. He thought the zero fiscal note from the Department of Law curious, since the last litigation cost over $1 million. He thought the fiscal note should reflect the cost of a probable fight over the constitutionality of the bill. He pointed out that there should also be a fiscal note from the Public Defender or Office of Public Advocacy, since they would have to represent women connected with the judicial by-pass proceeding. The Department of Law should have another fiscal note over the costs of defending the other side of the by- pass issue. Representative Gara WITHDREW his OBJECTION. Representative Kelly OBJECTED for discussion. Representative Kelly referred to the memo from the Department of Law. He interpreted the memo as stating that notification would likely survive, and the outcome regarding the constitutionality of required consent would be dubious. The memo goes on to state that the recent change in the composition of the court could have a bearing on the issues (Copy on File). 3:29:27 PM Representative Kelly REMOVED his OBJECTION. Representative Gara OBJECTED. Representative Gara reiterated that whatever the result of litigation, it would cost a lot of money. He maintained the Committee should have true fiscal notes from departments and that the current fiscal notes were not true. Representative Gara REMOVED his OBJECTION. CS HB 364 (FIN) was REPORTED out of Committee with individual recommendations and attached zero fiscal note #1 by the Department of Health and Social Services, new zero fiscal note by the Department of Administration, new indeterminate fiscal note by the Department of Law, and new zero fiscal note by the Alaska Court System. HOUSE BILL NO. 236 An Act relating to providing a death certificate for a deceased veteran without cost; relating to a program to honor the memory of a deceased veteran; and providing for an effective date. REPRESENTATIVE BOB LYNN, SPONSOR, spoke in support of the bill. 3:31:31 PM REPRESENTATIVE MAX GRUENBERG, SPONSOR, introduced the bill on behalf of the State Affairs Committee. Section 1 gives deceased veterans' families a copy of the death certificate to be used for official benefits. Section 2 provides for honoring deceased veterans by through a certificate expressing the State's grateful recognition for the veteran's service. Representative Gruenberg explained the fiscal note from the Department of Military and Veterans Affairs for $50,000, which reflects the cost of the death certificates. 3:34:46 PM Co-Chair Meyer reported the two fiscal notes. Vice-Chair Stoltze MOVED to report HB 236 out of Committee with individual recommendations and attached new fiscal note by the Department of Military and Veterans Affairs and new fiscal note by the Department of Health and Social Services. There being NO OBJECTION, it was so ordered. CS HB 236 (MLV) was REPORTED out of Committee with a "do pass" recommendation and with attached new fiscal note by the Department of Military and Veterans Affairs and new fiscal note by the Department of Health and Social Services. 3:36:44 PM HOUSE BILL NO. 406 An Act relating to a requirement for competitive bidding on contracts for the preparation of election ballots. REPRESENTATIVE ANNA FAIRCLOUGH, SPONSOR, presented CSHB 406(STA), an act relating to contracting for the preparation of election ballots. The bill allows a competitive bid proposal to be submitted to the Division of Elections. The Division can set parameters for quality, site inspection, testing, a period for the award, and accountability of delivering ballots. Representative Fairclough noted that the only non-resolved issue is the "Alaska product" preference on page 4, line 28. She explained that any printer in the state of Alaska can become contracted as a preferential provider. The purpose is to promote Alaska hire. Representative Crawford asked what the genesis of the bill was. Representative Fairclough explained that she was asked why Elections was exempt from the procurement process. She decided to work to create an open and competitive process for Alaskans. 3:41:48 PM Representative Thomas asked about penalties. Representative Fairclough replied that all printers would be held accountable to be timely and accurate in all they were contracted for. Representative Gara asked if there could be a situation where a dissatisfied bidder could slow down the process for getting out a ballot. Representative Fairclough replied that the time and quality assurance would be inside the proposal process. VERN JONES, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF ADMINISTRATION, explained that there would be a protest process included. The bill is silent on protest but procurement code procedures would be followed. There would be term contracts for a number of years to allow sufficient time for appeals and other eventualities. 3:44:55 PM Representative Kelly asked about the Alaska product provision. Mr. Jones responded that the bill does not subject the printing of ballots to the procurement code, where the Alaska better preference, product preference, and other preferences reside. The bill brings in a preference identical to the procurement code. The concern with the "Alaska Product" preference is a timing issue. Currently there is only one printer on the list. Many other printers could get on the list eventually, but a company must be on the list 30 days prior to the issuance of the request for proposals to qualify. It then takes approximately 30 days for the Department of Commerce to process an application to be placed on the list, but the list is only published twice each year. This could present a problem. He suggested increasing the Alaska bidder preference by whatever percentage, and eliminate the product preference. 3:47:35 PM Representative Fairclough explained that the bill would become effective in January of 2009. All printers are put on notice. She personally contacted the current vendor that currently holds the contract. She noted that the current provider has done a great job for the State; the bill is in no way a reflection of any performance concern. She went on to say that if there is wording for Alaska preference it could cause problems as this is not consistent with procurement law. 3:49:16 PM Co-Chair Meyer opened public testimony. WAYNE STEVENS, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE, spoke in support of the changes to provide for the competitive bidding process and the "Made in Alaska" preference. CHAZ SIMMONS, SALES MANAGER, SERVICE BUSINESS PRINTING, ANCHORAGE (Testified via teleconference), testified in support of the bill. He agrees with the principals of competitive bidding. He thought many Alaskan companies would be able to perform on the product. 3:51:06 PM KERRY NOBLIN, PENISULA PRINTING, KENAI (Testified via teleconference), spoke in support HB 406. He underlined the fact that currently there is only one printing company contracted by the Division of Elections. 3:53:12 PM PUBLIC TESTIMONY CLOSED. Representative Fairclough clarified that preparing ballots is not a simple process, but requires exactness and high quality. She stressed the importance of the Division of Elections being allowed the utmost scrutiny on any bidder. Co-Chair Chenault MOVED to REPORT HB 406 out of Committee with individual recommendations and attached zero fiscal note #1 by the Office of the Governor. CS HB 406 (STA) was REPORTED out of Committee with a "do pass" recommendation and with attached zero fiscal note #1 by the Office of the Governor. HOUSE BILL NO. 255 An Act relating to dual sentencing of certain juvenile offenders; amending Rule 24.1, Alaska Delinquency Rules; and providing for an effective date. HB 255 was SCHEDULED but not HEARD. ADJOURNMENT The meeting was adjourned at 3:57 PM.