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