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CSSB 160(FIN): "An Act relating to a procurement and electronic commerce tools program for state departments and instrumentalities of the state; and providing for an effective date."

00 CS FOR SENATE BILL NO. 160(FIN) 01 "An Act relating to a procurement and electronic commerce tools program for state 02 departments and instrumentalities of the state; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 36.30 is amended by adding a new section to article 1 to read: 05 Sec. 36.30.093. State procurement modernization and electronic commerce 06 program. (a) The Department of Administration may enter into a procurement 07 modernization and electronic commerce program under which the Department of 08 Administration contracts with a person from the private sector to provide procurement 09 services and to provide for the delivery and use of electronic commerce tools. 10 Notwithstanding any other provision of this chapter, the contract shall be awarded 11 under AS 36.30.100 - 36.30.190. 12 (b) The Department of Administration should implement the program at a 13 pace that is reasonable for the Department of Administration but that is also 14 expeditious enough to provide a scale of operation that is sufficient to enable the

01 program to be viable. 02 (c) Notwithstanding any other provision of this chapter, all state departments 03 and instrumentalities of the state may participate in the program. A state department or 04 an instrumentality of the state may participate in one or more parts of the program. If a 05 state department or an instrumentality of the state limits its participation to the 06 delivery of the electronic commerce tools, the state department or instrumentality of 07 the state may negotiate, as an amendment to the contract authorized under (a) of this 08 section, a financial arrangement with the program contractor to implement the delivery 09 of the electronic commerce tools. 10 (d) A procurement conducted by the program contractor is not subject to this 11 chapter or to AS 36.15. However, the procurement is subject to (g) and (h) of this 12 section. A procurement conducted by the program contractor may not exceed $50,000 13 and may only be for 14 (1) goods; 15 (2) services suitable for performing repetitive processes; or 16 (3) a combination of (1) and (2) of this subsection. 17 (e) Whether or not a state department or an instrumentality of the state 18 participates in the parts of the program that provide procurement services, the 19 Department of Administration may make available to state departments or 20 instrumentalities of the state the program elements that save the state departments and 21 instrumentalities of the state money on the cost of goods and services. In this 22 subsection, "elements" includes electronic commerce tools, catalogs on available 23 goods and services, and electronic marketplaces created under the program. 24 (f) The office of management and budget shall establish methods for 25 measuring the savings achieved under the program by a state department or 26 instrumentality of the state that participates in the program. The methods for 27 measuring the efficiency of the services provided by the program contractor and the 28 efficiency of the services provided by employees of the state must be identical. 29 (g) The program contractor shall award a contract based on solicited bids as 30 provided by AS 36.30.170(a) - (f), (h), (j), and (k). A procurement under this 31 subsection is also subject to AS 36.15.010 and 36.15.050 to the extent AS 36.15.010

01 and 36.15.050 are applicable. 02 (h) When awarding a contract under solicited proposals, the program 03 contractor shall consider whether the offeror qualifies as an Alaska bidder, is offering 04 the service of an employment program, or qualifies for a preference under 05 AS 36.30.170(e) or (f). A procurement under this subsection is also subject to an 06 Alaska products preference under AS 36.30.332 - 36.30.338, to a recycled products 07 preference under AS 36.30.337, and to AS 36.15.010 and 36.15.050 to the extent 08 AS 36.15.010 and 36.15.050 are applicable. In this subsection, 09 (1) "Alaska bidder" has the meaning given in AS 36.30.170; 10 (2) "employment program" has the meaning given in AS 36.30.990. 11 (i) In this section, 12 (1) "instrumentality of the state" means a state public corporation, a 13 state enterprise, or another administrative unit of state government that handles its 14 procurement and supply management in a manner that is separate from a department 15 of the state, but does not include a municipality or a municipal school district; 16 (2) "part of the program" means 17 (A) providing procurement services; 18 (B) providing for the delivery of electronic commerce tools, 19 including the creation of electronic marketplaces; 20 (C) providing for the use of electronic commerce tools; or 21 (D) a combination of one or more of the items described in (A) 22 - (C) of this paragraph; 23 (3) "program" means the procurement modernization and electronic 24 commerce program authorized under (a) of this section; 25 (4) "program contractor" means the contractor selected by the 26 department under (a) of this section to manage the program. 27 * Sec. 2. AS 36.30.093(d) is amended to read: 28 (d) A procurement conducted by the program contractor is [NOT] subject to 29 this chapter and [OR] to AS 36.15. [HOWEVER, THE PROCUREMENT IS 30 SUBJECT TO (g) AND (h) OF THIS SECTION.] A procurement conducted by the 31 program contractor may not exceed $50,000 and may only be for

01 (1) goods; 02 (2) services suitable for performing repetitive processes; or 03 (3) a combination of (1) and (2) of this subsection. 04 * Sec. 3. AS 36.30.093(g) and 36.30.093(h) are repealed. 05 * Sec. 4. Sections 2 and 3, ch. 51, SLA 2003, are repealed. 06 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 CONTINUATION OF PILOT PROGRAM. The program established by 09 AS 36.30.093, enacted by sec. 1 of this Act, is intended, to the extent consistent with 10 AS 36.30.093, to be a continuation of the pilot program established by sec. 2, ch. 51, SLA 11 2003. 12 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 APPLICABILITY. Nothing in this Act affects the validity of actions taken by the 15 Department of Administration under ch. 51, SLA 2003, before the effective date of this 16 section. 17 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 RETROACTIVITY. Sections 1 and 4 - 6 of this Act are retroactive to July 1, 2006. 20 * Sec. 8. Sections 1 and 4 - 7 of this Act take effect immediately under AS 01.10.070(c). 21 * Sec. 9. Sections 2 and 3 of this Act take effect July 1, 2009.