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HB 477: "An Act relating to procurement by state agencies; and providing for an effective date."

00 HOUSE BILL NO. 477 01 "An Act relating to procurement by state agencies; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 36.30.005 is amended by adding a new subsection to read: 04 (d) On and after July 1, 2007, the department shall use electronic methods, 05 including the Internet, exclusively for all of its activities under this chapter, including 06 advertising procurement needs, giving other notices, making purchases, paying for 07 purchases, handling billings, cataloging inventory, and determining procurement 08 needs. 09 * Sec. 2. AS 36.30.015(a) is amended to read: 10 (a) The commissioner of transportation and public facilities may not delegate 11 to another agency the authority to contract for construction. [BEFORE 12 DELEGATING AUTHORITY TO AN AGENCY UNDER THIS SUBSECTION, 13 THE COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES 14 SHALL MAKE A WRITTEN DETERMINATION THAT THE AGENCY IS 15 CAPABLE OF IMPLEMENTING THE DELEGATED AUTHORITY.

01 NOTWITHSTANDING DELEGATION OF AUTHORITY UNDER THIS 02 SUBSECTION, CONTRACTS FOR CONSTRUCTION ARE GOVERNED BY 03 THIS CHAPTER AND REGULATIONS ADOPTED BY THE COMMISSIONER 04 OF ADMINISTRATION UNDER THIS CHAPTER.] 05 * Sec. 3. AS 36.30.015(b) is amended to read: 06 (b) The commissioner of administration may not delegate to an agency the 07 authority to contract for and manage services, professional services, and supplies. 08 [NOTWITHSTANDING DELEGATION OF AUTHORITY UNDER THIS 09 SUBSECTION, AN AGENCY'S EXERCISE OF THE AUTHORITY IS 10 GOVERNED BY THIS CHAPTER AND REGULATIONS ADOPTED BY THE 11 COMMISSIONER UNDER THIS CHAPTER. BEFORE DELEGATING 12 AUTHORITY TO AN AGENCY UNDER THIS SUBSECTION, THE 13 COMMISSIONER SHALL MAKE A WRITTEN DETERMINATION THAT THE 14 AGENCY IS CAPABLE OF IMPLEMENTING THE DELEGATED AUTHORITY.] 15 * Sec. 4. AS 36.30.015(i) is amended to read: 16 (i) Notwithstanding (e) of this section [AND THE AUTHORITY TO 17 DELEGATE UNDER (a) OF THIS SECTION], the Alaska Railroad Corporation, 18 rather than the Department of Transportation and Public Facilities, shall perform 19 signalization and flagging work, may perform the signalization and flagging work by 20 itself or by using contractors, and, if it decides to use contractors for the work, it shall 21 obtain the contractors by using its procurement procedures adopted under (e) of this 22 section. 23 * Sec. 5. AS 36.30.300(e) is amended to read: 24 (e) The [EXCEPT FOR PROCUREMENTS OF SUPPLIES, SERVICES, 25 PROFESSIONAL SERVICES, OR CONSTRUCTION THAT DO NOT EXCEED 26 THE AMOUNT FOR SMALL PROCUREMENTS UNDER AS 36.30.320(a) AS 27 APPLICABLE, THE] authority to make a determination required by this section may 28 not be delegated [, EVEN IF THE AUTHORITY TO CONTRACT IS DELEGATED 29 UNDER AS 36.30.015(a) AND (b)]. 30 * Sec. 6. AS 36.30.305(a) is amended to read: 31 (a) A construction contract under $100,000, or a contract for supplies,

01 services, or professional services, may be awarded without competitive sealed bidding 02 or competitive sealed proposals, in accordance with regulations adopted by the 03 commissioner. A contract may be awarded under this section only when the chief 04 procurement officer determines in writing that a situation exists that makes 05 competitive sealed bidding or competitive sealed proposals impractical or contrary to 06 the public interest, except that the attorney general may make the determination for 07 services of legal counsel, and the commissioner of transportation and public facilities 08 may make the determination for construction contracts under $100,000 or 09 procurements for the state equipment fleet. Procurements under this section shall be 10 made with competition that is practicable under the circumstance. The [EXCEPT 11 FOR PROCUREMENTS OF SUPPLIES, SERVICES, PROFESSIONAL SERVICES, 12 OR CONSTRUCTION THAT DO NOT EXCEED THE AMOUNT FOR SMALL 13 PROCUREMENTS UNDER AS 36.30.320(a), AS APPLICABLE, THE] authority to 14 make a determination required by this section may not be delegated. 15 * Sec. 7. AS 36.30.520(b) is amended to read: 16 (b) The Department of Transportation and Public Facilities [AND ANY 17 AGENCY TO WHOM THE COMMISSIONER OF ADMINISTRATION OR THE 18 COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES HAS 19 DELEGATED PROCUREMENT AUTHORITY UNDER AS 36.30.015] shall, by 20 October 1 of each year, submit to the commissioner of administration records of the 21 type specified in (a) of this section for emergency procurements made under 22 AS 36.30.310. The Department of Transportation and Public Facilities shall, [EVEN 23 IF PROCUREMENT AUTHORITY HAS BEEN DELEGATED UNDER 24 AS 36.30.015 TO ANOTHER AGENCY,] by October 1 of each year, submit to the 25 commissioner of administration records of the type specified in (a) of this section for 26 single source procurement contracts made under AS 36.30.300. The commissioner of 27 administration shall maintain these records as required by (a) of this section. 28 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION TO ELECTRONIC SYSTEM. (a) By July 1, 2007, the Department of 31 Administration shall change the system that it uses to carry out its responsibilities under

01 AS 36.30 (State Procurement Code) so that, on and after that date, the department uses 02 electronic methods, including the Internet, exclusively for all of its activities under this 03 chapter, including advertising procurement needs, giving other notices, making purchases, 04 handling billings, cataloging inventory, and determining procurement needs. 05 (b) As part of the system development under (a) of this section, the Department of 06 Administration shall develop the programs necessary to use electronic methods, including the 07 Internet, to handle and manage regularly recurring purchases of goods. The programs 08 developed for these recurring purchases must provide for the identification and cataloging of 09 these recurring purchases, grouping of similar types of purchases, providing for the 10 competition among suppliers required by AS 36.30 for the particular purchases, and providing 11 for entering into and implementing the contracts for these recurring purchases. The 12 department may contract with a private person to develop the programs required by this 13 subsection. 14 (c) The Department of Administration shall submit to the legislature by February 1 of 15 each year through February 1, 2007, a report detailing the progress that the department has 16 made towards meeting the goal of (a) of this section.