SB 212: "An Act relating to publications produced by state agencies and to the procurement of property, property interests, and services by state agencies."
00SENATE BILL NO. 212 01 "An Act relating to publications produced by state agencies and to the 02 procurement of property, property interests, and services by state agencies." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS, PURPOSE, AND INTENT. (a) The legislature finds that 05 (1) the state needs to develop and maintain a strong, stable, and prosperous 06 economy based on private investment; 07 (2) the existence of a strong and healthy free enterprise system is directly 08 related to the well-being and competitive strength of Alaskan businesses and to the opportunity 09 for Alaskan businesses to have free entry into the business market and to grow and expand; 10 (3) the use of products manufactured, grown, or produced in Alaska 11 strengthens, stabilizes, and diversifies Alaska's economy; 12 (4) when governmental agencies purchase and use out-of-state products and 13 services, they reduce job-creating investments and limit the growth of the economy of Alaska; 14 (5) when bid documents for public contracts do not specify the use of available
01 Alaskan products, comparable out-of-state goods are usually purchased instead, and these 02 purchases result in a loss of revenue in the state and weaken Alaska's economic base; 03 (6) contracts are frequently awarded to out-of-state firms, even though Alaskan 04 suppliers, manufacturers, and providers of services are more accessible and responsive to the 05 needs of Alaska's business community than their out-of-state counterparts; 06 (7) there is a need for Alaska to examine its purchasing practices in order to 07 ensure that state agencies support Alaskan businesses by making every reasonable effort to 08 identify available Alaskan goods and services and to foster bidding by local businesses and 09 labor forces; 10 (8) state agencies should look outside Alaska for goods and services only if 11 they have provided notice of the procurement in Alaska. 12 (b) The legislature declares that the purpose of this Act is to foster a procurement 13 process where Alaskan businesses obtain a fair proportion of Alaska's total procurement 14 contracts by providing Alaskan businesses with a fair, equitable, and competitive bid process. 15 (c) It is the intent of the legislature that 16 (1) except as prohibited under AS 36.30.320(d), a state agency shall, when 17 practicable and economically feasible, design procurements in a way that fosters participation 18 by Alaska bidders or offerors; 19 (2) except as prohibited under AS 36.30.320(d), and unless it is anticipated that 20 two or more Alaska bidders or offerors would be capable of performing the procurement, an 21 agency that is proposing a procurement shall, when practicable and economically feasible, 22 divide or otherwise structure the procurement so that it can be performed by Alaska bidders 23 or offerors, if the proposed procurement is too large to be performed by Alaska bidders or 24 offerors, and if the procurement officer determines that Alaska bidders or offerors generally 25 would be capable of performing the procurement if the procurement were reduced in size or 26 otherwise restructured; in this paragraph, "Alaska bidders or offerors" means persons who 27 qualify as Alaska bidders under AS 36.30.170(b). 28 * Sec. 2. AS 36.30.130(a) is amended to read: 29 (a) The procurement officer shall give adequate public notice of the invitation 30 to bid at least 21 days before the date for the opening of bids. If a determination is 31 made in writing that a shorter notice period is necessary for a particular bid, the
01 21-day period may be shortened. The determination shall be made by the chief 02 procurement officer for bids for supplies, services, or professional services. The 03 determination shall be made by the commissioner of transportation and public facilities 04 for bids for construction or acquisition of property for the state equipment fleet. 05 Notice shall be published in the Alaska Administrative Journal. The time and manner 06 of notice must be in accordance with regulations adopted by the commissioner of 07 administration. When practicable, notice may include 08 (1) publication in a newspaper calculated to reach prospective bidders 09 located in the state; 10 (2) notices posted in public places within the area where the work is 11 to be performed or the material furnished; and 12 (3) notices mailed to all active prospective contractors on the 13 appropriate list maintained under AS 36.30.050 14 (A) if the contractors are located in the state; 15 (B) upon request, if the contractors are not located in the 16 state. 17 * Sec. 3. AS 36.30.540 is amended to read: 18 Sec. 36.30.540. REPORT TO LEGISLATURE. On or before January 15 of 19 each year, [BEGINNING WITH DECEMBER 1, 1989,] the commissioner shall 20 [BIENNIALLY] report to the legislature concerning procurements by agencies. The 21 report must include 22 (1) the records maintained by the commissioner under AS 36.30.510 23 and the records maintained under AS 36.30.520(a) for the previous [TWO] fiscal year 24 [YEARS]; 25 (2) recommendations for changes in this chapter or other laws based 26 on implementation of this chapter in the previous [TWO] fiscal year [YEARS]; 27 (3) a description of any matters that involved litigation concerning this 28 chapter in the previous [TWO] fiscal year [YEARS]; 29 (4) a list of procurements made under this chapter from out-of-state 30 sources during the previous [TWO] fiscal year [YEARS] together with the total 31 number of procurement contracts entered into during that period with out-of-state
01 contractors and the total value of these contracts; this paragraph does not apply to 02 procurements made under AS 36.30.320; and 03 (5) a list of procurements made under this chapter from state sources 04 during the previous [TWO] fiscal year [YEARS] together with the total number of 05 procurement contracts entered into during that period with state contractors and the 06 total value of these contracts; this paragraph does not apply to procurements made 07 under AS 36.30.320; 08 (6) the number of bidders and offerors that bid on or made 09 proposals for procurements under this chapter, the number of these bidders and 10 offerors that were located in the state, and the number of these bidders and 11 offerors that were located outside the state; this paragraph does not apply to 12 procurements made under AS 36.30.320. 13 * Sec. 4. AS 36.30.540 is amended by adding a new subsection to read: 14 (b) A state agency that is subject to AS 36.30.895 and that contracts for 15 investment and brokerage services shall submit to the legislature on or before 16 January 15 of each year a report covering the preceding fiscal year and reporting on 17 the state agency's progress in implementing AS 36.30.895. 18 * Sec. 5. AS 36.30.850(b)(13) is amended to read: 19 (13) purchases of income-producing assets for the state treasury or a 20 public corporation of the state, except as provided by AS 36.30.540(b) and 21 36.30.895; 22 * Sec. 6. AS 36.30.850(b)(15) is amended to read: 23 (15) a contract that is a delegation, in whole or in part, of investment 24 powers held by the commissioner of revenue under AS 14.40.400, AS 14.42.200, 25 14.42.210, AS 18.56.095, AS 37.10.070, 37.10.071, or AS 37.14, except as provided 26 by AS 36.30.540(b) and 36.30.895; 27 * Sec. 7. AS 36.30.850(b)(16) is amended to read: 28 (16) a contract that is a delegation, in whole or in part, of investment 29 powers or fiduciary duties of the Board of Trustees of the Alaska Permanent Fund 30 Corporation under AS 37.13, except as provided by AS 36.30.540(b) and 36.30.895; 31 * Sec. 8. AS 36.30.850(b) is amended by adding a new paragraph to read:
01 (30) contracts to be performed in an area outside of the country and 02 requiring knowledge of the customs, procedures, rules, or laws of the area. 03 * Sec. 9. AS 36.30 is amended by adding a new section to read: 04 Sec. 36.30.895. STATE POLICY FOR PROCUREMENT OF INVESTMENT 05 SERVICES. It is the policy of the state that state agencies that procure investment and 06 brokerage services increase the utilization of brokerage and investment services 07 provided by persons located in the state. In this section, "state agency" includes the 08 University of Alaska, the Alaska Railroad Corporation, the Alaska Housing Finance 09 Corporation, the Alaska Aerospace Development Corporation, the Alaska State Pension 10 Investment Board, and the Alaska permanent fund established under AS 37.13.010, but 11 does not include the state trustees or federal trustees under AS 37.14.450. 12 * Sec. 10. AS 44.99.200 is repealed and reenacted to read: 13 Sec. 44.99.200. PRODUCTION OF PUBLICATIONS. The publications of a 14 state agency shall be produced at a private sector facility located in the state when 15 practicable. The Department of Administration shall establish standards for the 16 production of publications by state agencies, except that the Board of Regents of the 17 University of Alaska shall establish the standards for the university. The standards 18 shall be designed to promote simplicity, low cost, and consistency. 19 * Sec. 11. AS 44.99.210 is amended to read: 20 Sec. 44.99.210. DISCLOSURES ON PUBLICATION. If [A PUBLICATION 21 OF A STATE AGENCY IS EXEMPTED UNDER AS 44.99.200(a) FROM BEING 22 PRODUCED AT A STATE-OPERATED FACILITY AND IF] the actual annual costs 23 for a [THE] publication of a state agency that are paid from the general fund exceed 24 $1,500, the publication must include a statement that gives the name of the agency 25 releasing the publication, the purpose of the publication, the cost for each copy of the 26 publication, and the city and state where the printing was done. The statement must 27 read: "This publication was released by . . . (name of state agency) . . ., produced at 28 a cost of $ . . . . . per copy to . . . (statement of purpose) . . ., and printed in . . . . . 29 . (city and state where printed)." If the publication is required by law, the statement 30 must also include: "This publication is required by . . . (appropriate citation to Alaska 31 law)." The statement may include, if applicable, a declaration of the revenue raised
01 by the sale of the publication or from the purchase of advertising in the publication. 02 The statement shall be printed in one conspicuous place in the body of the publication 03 in a type size that is not smaller than eight points and shall be placed in a box 04 composed of at least one point rule. In this section, "cost for each copy" means the 05 figure that results after dividing the total contract cost of producing the publication by 06 the number of copies produced. This section does not apply to a publication that is 07 intended primarily for foreign or other out-of-state use, or to a program for a public 08 ceremony of a state agency. 09 * Sec. 12. AS 44.99.230 is repealed. 10 * Sec. 13. INNOVATIVE CONSTRUCTION PROCUREMENT METHODS PILOT 11 PROGRAM. (a) Within six months after the effective date of this Act, the commissioner of 12 transportation and public facilities shall begin a two-year pilot program for the use of 13 innovative methods for the procurement of construction services by using bonuses to replace 14 the preferences required under AS 36.30. 15 (b) Notwithstanding the provisions of AS 36.30, if the commissioner determines in 16 writing that using innovative construction procurement methods for the procurement of 17 construction contracts would be in the best interests of the state, the commissioner may, by 18 regulation, adopt procedures different than those provided under AS 36.30 as necessary to use 19 bonuses instead of preferences in the procurement of construction contracts. The 20 determination must find that the innovative methods are not contrary to the intent and 21 purposes of AS 36.30, demonstrate that the innovative methods are in the best interests of the 22 state, and describe how the innovative methods modify the procurement methods and 23 procedures of AS 36.30. 24 (c) Within 15 months after the pilot program begins, the commissioner shall report 25 to the legislature on the construction contracts awarded during the first year of the pilot 26 program. Within 27 months after the pilot program begins, the commissioner shall report to 27 the legislature on the construction contracts awarded during the second year of the pilot 28 program. 29 (d) The legislature may review the pilot program at any time during the program and 30 may make the program permanent or broaden the scope of the innovative procurement 31 program.
01 (e) In this section, 02 (1) "best interests of the state" means that the proposed action would provide 03 (A) an economic benefit to the private businesses and citizens of the 04 state; 05 (B) an economic benefit to state government; and 06 (C) greater administrative efficiencies than existing procedures provide; 07 (2) "commissioner" means the commissioner of transportation and public 08 facilities. 09 * Sec. 14. AS 36.30.540(a)(6), enacted by sec. 3 of this Act, applies to reports due after 10 the effective date of this Act. 11 * Sec. 15. IMPLEMENTATION REPORTS. The first report under AS 36.30.540(b), 12 enacted by sec. 4 of this Act, is due January 15, 1995, and must cover the activities of the 13 reporting state agency since the effective date of this Act.