03/06/2008 08:00 AM House STATE AFFAIRS
| Audio | Topic | 
|---|---|
| Start | |
| HB353 | |
| HCR20 | |
| HB406 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 396 | TELECONFERENCED | |
| += | HB 261 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 353 | TELECONFERENCED | |
| += | HCR 20 | TELECONFERENCED | |
| += | HB 406 | TELECONFERENCED | |
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 6, 2008                                                                                          
                           8:11 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Roses, Vice Chair                                                                                            
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Andrea Doll                                                                                                      
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative John Coghill                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 353                                                                                                              
"An Act relating to the blocking of certain Internet sites at                                                                   
public libraries and to library assistance grants."                                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 20                                                                                              
Encouraging the installation of fire sprinkler systems in                                                                       
residences.                                                                                                                     
                                                                                                                                
     - MOVED CSHCR 20(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 406                                                                                                              
"An Act relating to a requirement for competitive bidding on                                                                    
contracts for the preparation of election ballots."                                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 396                                                                                                              
"An Act relating to and increasing the amount of the 2008                                                                       
permanent fund dividend; and providing for an effective date."                                                                  
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 261                                                                                                              
"An Act establishing a clean elections program in the state."                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 353                                                                                                                  
SHORT TITLE: PUBLIC LIBRARY INTERNET FILTERS                                                                                    
SPONSOR(s): REPRESENTATIVE(s) KELLER                                                                                            
                                                                                                                                
02/06/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/06/08       (H)       STA, FIN                                                                                               
02/28/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/28/08       (H)       Heard & Held                                                                                           
02/28/08       (H)       MINUTE(STA)                                                                                            
03/04/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/04/08       (H)       Heard & Held                                                                                           
03/04/08       (H)       MINUTE(STA)                                                                                            
03/06/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HCR 20                                                                                                                  
SHORT TITLE: RESIDENTIAL FIRE SPRINKLER SYSTEMS                                                                                 
SPONSOR(s): REPRESENTATIVE(s) SEATON                                                                                            
                                                                                                                                
01/31/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/31/08       (H)       L&C, STA                                                                                               
02/27/08       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
02/27/08       (H)       Moved Out of Committee                                                                                 
02/27/08       (H)       MINUTE(L&C)                                                                                            
02/29/08       (H)       L&C RPT 2DP 2NR                                                                                        
02/29/08       (H)       DP: BUCH, GATTO                                                                                        
02/29/08       (H)       NR: GARDNER, NEUMAN                                                                                    
03/04/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/04/08       (H)       Scheduled But Not Heard                                                                                
03/06/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 406                                                                                                                  
SHORT TITLE: CONTRACTS FOR PREPARATION OF BALLOTS                                                                               
SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH                                                                                        
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       STA, FIN                                                                                               
03/04/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/04/08       (H)       Scheduled But Not Heard                                                                                
03/06/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
REPRESENTATIVE WES KELLER                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As sponsor of HB 353, noted the change made                                                              
in Version M.                                                                                                                   
                                                                                                                                
BARBARA BERG, Director                                                                                                          
Juneau Public Libraries                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB
353.                                                                                                                            
                                                                                                                                
REPRESENTATIVE PAUL SEATON                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HCR 20 as prime sponsor.                                                                       
                                                                                                                                
KELLY NIKALOLO, Assistant Fire Marshal                                                                                          
Division of Fire and Life Safety                                                                                                
Central Office                                                                                                                  
Department of Public Safety (DPS)                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HCR 20.                                                                          
                                                                                                                                
ERNIE MISEWICZ, Fire Marshal                                                                                                    
Fairbanks Fire Department                                                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HCR 20.                                                                          
                                                                                                                                
GREY MITCHELL, Director                                                                                                         
Labor Standards and Safety                                                                                                      
Department of Labor and Workforce Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Offered information during the hearing on                                                                
HCR 20.                                                                                                                         
                                                                                                                                
RENEE LIMOGE, Staff                                                                                                             
Representative Anna Fairclough                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 406 on behalf of                                                                           
Representative Fairclough, prime sponsor.                                                                                       
                                                                                                                                
KERRY NOBLIN                                                                                                                    
Peninsula Printing                                                                                                              
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HB 406.                                                                          
                                                                                                                                
PATRICK FOSTER                                                                                                                  
A.T. Publishing and Printing                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 406.                                                                          
                                                                                                                                
GAIL FENUMIAI, Director                                                                                                         
Central Office                                                                                                                  
Division of Elections                                                                                                           
Office of the Lieutenant Governor                                                                                               
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Explained  how  HB  406 would  impact  the                                                             
division's business practices.                                                                                                  
                                                                                                                                
VERN JONES, Chief Procurement Officer                                                                                           
Central Office                                                                                                                  
Division of General Services                                                                                                    
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
406.                                                                                                                            
                                                                                                                                
JASON HOOLEY, Special Assistant/Legislature                                                                                     
Office of the Lieutenant Governor                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  regarding the  practical aspects                                                             
of HB 406.                                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
VICE  CHAIR BOB  ROSES called  the House  State Affairs  Standing                                                             
Committee  meeting  to  order at  8:10:59  AM.    Representatives                                                             
Johansen,  Johnson, Gruenberg,  Doll, and  Roses were  present at                                                               
the call to order.                                                                                                              
                                                                                                                                
8:12:13 AM                                                                                                                    
                                                                                                                                
HB 353-PUBLIC LIBRARY INTERNET FILTERS                                                                                        
                                                                                                                                
VICE CHAIR ROSES  announced that the first order  of business was                                                               
HOUSE BILL NO.  353, "An Act relating to the  blocking of certain                                                               
Internet  sites at  public libraries  and  to library  assistance                                                               
grants."                                                                                                                        
                                                                                                                                
8:12:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt the  proposed committee                                                               
substitute  (CS), Version  25-LS1356\M, Bannister,  3/5/08, as  a                                                               
work draft.   There being no objection, Version M  was before the                                                               
committee.                                                                                                                      
                                                                                                                                
8:13:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WES  KELLER, Alaska State Legislature,  as sponsor                                                               
of HB  353, said the change  made in Version M  was the exemption                                                               
of the  university libraries from the  proposed required Internet                                                               
filters.   He  said he  supports  Version M.   In  response to  a                                                               
request for information  pertaining to the cost  of the filtering                                                               
system, made by Representative Doll  at the last bill hearing, he                                                               
said  the  commissioner  of   the  Department  of  Administration                                                               
[Annette Kreitzer] has committed  to researching cost comparisons                                                               
and  looking into  the possibility  of a  group license,  and has                                                               
said she would send someone  to testify before the next committee                                                               
of referral.   In response to  a question from Vice  Chair Roses,                                                               
he said Ms.  Kreitzer did not indicate how long  it would take to                                                               
compile  that  information;  however,   he  guaranteed  that  the                                                               
information would accompany  the bill into the  next committee of                                                               
referral.                                                                                                                       
                                                                                                                                
8:16:55 AM                                                                                                                    
                                                                                                                                
BARBARA  BERG, Director,  Juneau  Public  Libraries, addressed  a                                                               
misconception  she heard  at  a  prior bill  hearing  that if  an                                                               
application was not  made for the federal E-rate,  then the state                                                               
would have to  pick up the cost.  She  explained that the federal                                                               
E-rate  is  a reimbursement  and  discount  program.   A  library                                                               
applies for the discount, based  on the services it is receiving,                                                               
and  the Internet  service provider  (ISP) or  telecommunications                                                               
provider  is the  one  that  gets the  payment  from the  federal                                                               
government.   The ISP or telecommunications  provider passes that                                                               
on to the library  either in the form of a  discounted bill or by                                                               
requiring  the library  to apply  in July  after the  end of  the                                                               
fiscal year,  and not  reimbursing the library  until fall.   She                                                               
said  there really  is not  a way  that E-rate  funding can  ever                                                               
displace  state  budgeted  funding, because  the  state  budgeted                                                               
funding  is  something for  which  libraries  can plan  in  their                                                               
budgets and use for operations.   Ms. Berg said when she prepares                                                               
her budget,  she budgets for the  full telephone cost, as  if the                                                               
E-rate did  not exist, in order  to guarantee bills will  be paid                                                               
when they arrive.                                                                                                               
                                                                                                                                
8:18:25 AM                                                                                                                    
                                                                                                                                
MS.  BERG  said  there  had  also  been  a  statement  made  that                                                               
libraries  that  did   not  filter  the  Internet   were  out  of                                                               
compliance with CIPA.   She stated that the provision  in the FCC                                                               
ruling  that  implemented CIPA  was  that  if libraries  did  not                                                               
accept funding for  Internet service, they were  not obligated to                                                               
filter  under CIPA;  they would  not  be out  of compliance  with                                                               
CIPA, because CIPA would not apply to  them.  She said, "It was a                                                               
community decision that  we not filter."  She  said that decision                                                               
comes  about for  libraries, not  just because  of the  cost, but                                                               
also  because the  E-rate program  is a  complicated program  for                                                               
which to  apply and  to which  to comply.   She added,  "It makes                                                               
filing your  income taxes  look like  a walk in  the park."   She                                                               
said she has one librarian who  spends weeks every year trying to                                                               
comply  with the  telecommunications  application  process.   She                                                               
stated that  many of  the small libraries  operating only  on the                                                               
state grant  have no technical  staff and don't have  the ability                                                               
to spend weeks  doing a total of [four] filings  with the federal                                                               
government annually  in order  to get  this money.   Furthermore,                                                               
the level  of complication  rises "when you  go for  the Internet                                                               
funding."  She offered further details.  She concluded:                                                                         
                                                                                                                                
MS. BERG said at some point  the discount the library gets is not                                                               
worth  the staff  hours.    She said  the  Juneau Public  Library                                                               
increased its  Internet bandwidth  last year  and finds  that the                                                               
discounts  that Alaska  Communications  Systems,  Inc. (ACS)  and                                                               
General Communications Incorporated provide  are greater than the                                                               
discount  the library  would receive  from  the federal  program.                                                               
She  concluded, "So,  as a  responsible  administrator, I  cannot                                                               
waste my city's  money doing something that has no  return, and I                                                               
think a lot of libraries are in that same situation."                                                                           
                                                                                                                                
8:21:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG urged  members  to look  at Ms.  Berg's                                                               
handout.   He  said he  is troubled  by [the  information on  the                                                               
handout] and urged "the committee or  some other to take up these                                                               
subjects that you mentioned."                                                                                                   
                                                                                                                                
MS. BERG, in response to  a remark from Representative Gruenberg,                                                               
said she does  not remember what the  authorizing legislation for                                                               
the E-rate subsidies  is, but she would  provide that information                                                               
later.  She continued:                                                                                                          
                                                                                                                                
     The  universal service  fund was  set up  - we  all pay                                                                    
     into it when  we pay our telephone bills.   And ... for                                                                    
     years  they   had  an  offset   for  rural   areas  for                                                                    
     telecommunications, for telephone  connections, so that                                                                    
     rural  areas  could  get  on   telephone,  and  it  was                                                                    
     extended  under the  universal  service  fund to  cover                                                                    
      Internet connection, as well, for schools and public                                                                      
        libraries.  And the universities have never been                                                                        
     covered by this funding.                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  if ISPs  and  telecommunication                                                               
companies  are  required  under  federal   law  to  pass  on  the                                                               
discounted rate to libraries.                                                                                                   
                                                                                                                                
MS.  BERG  answered,  "If  they receive  the  payment  under  the                                                               
universal  service  fund, they  are  obligated  to reimburse  the                                                               
discounted portion of the bill."                                                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked, "Must they do  that immediately,                                                               
or can they [make] significantly delays in receiving that fund?"                                                                
                                                                                                                                
MS.  BERG   answered,  "They  can  make   significant  delays  in                                                               
receiving  it.   In fact,  one year  ... there  was a  dispute in                                                               
Congress as to  whether they were going to  authorize the funding                                                               
or  not, and  our application  process was  held up,  and it  was                                                               
unclear  as  to how  much  would  be funded  or  if  it would  be                                                               
funded."                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  cited  a   sentence  from  Ms.  Berg's                                                               
handout,   which  read:     "In   all-volunteer  libraries,   the                                                               
administrative burden of complying with  E-rate and CIPA can make                                                               
it impossible to apply for these  funds."  He asked, "So, really,                                                               
it is meaningless  in some cases, and in that  case the companies                                                               
keep this extra money they receive, right?"                                                                                     
                                                                                                                                
MS.  BERG responded  that  because she  does  not understand  the                                                               
vendor's side  of the operation,  she probably should not  make a                                                               
statement.  However,  she surmised that "they have  to go through                                                               
an  application and  justification  process to  show who  they're                                                               
giving a discount  to."  She said  Representative Gruenberg would                                                               
have to ask someone from ACS or GCI "how it works on their end."                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG reiterated  his  concern regarding  Ms.                                                               
Berg's written information.                                                                                                     
                                                                                                                                
8:24:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL asked  how local control is  measured and put                                                               
into effect.                                                                                                                    
                                                                                                                                
MS. BERG replied that Juneau is  unique, in that it has no formal                                                               
library board,  but instead  is authorized  in the  city charter;                                                               
therefore, Ms. Berg  said, she answers to the city  manager.  She                                                               
said she  discusses major  decisions, such as  whether or  not to                                                               
filter  the Internet,  with the  Friends of  the Juneau  Library;                                                               
however, that board is more of  an informal advisory board than a                                                               
governing board, and its membership  is drawn from "anybody who's                                                               
interested  in  the  libraries."   If  there  are  complaints  or                                                               
problems,  the library  manager  hears about  them  and they  are                                                               
heard before the Juneau Assembly.                                                                                               
                                                                                                                                
8:26:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG offered his  understanding that there is                                                               
a  document  by  the  Brennan  Center for  Justice  at  New  York                                                               
University School of  Law which presents both sides  of the issue                                                               
related to HB 353.                                                                                                              
                                                                                                                                
8:26:41 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES announced that HB 353 was heard and held.                                                                      
                                                                                                                                
HCR 20-RESIDENTIAL FIRE SPRINKLER SYSTEMS                                                                                     
                                                                                                                                
8:27:06 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  ROSES announced that  the next order of  business was                                                               
HOUSE CONCURRENT RESOLUTION NO.  20, Encouraging the installation                                                               
of fire sprinkler systems in residences.                                                                                        
                                                                                                                                
8:27:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, Alaska State  Legislature, presented                                                               
HCR 20 as  prime sponsor.  He  said each year in  Homer [the fire                                                               
department] holds  training sessions  for the community  to teach                                                               
fire safety.   Representative Seaton described  the experience he                                                               
had at one  of the training sessions, during which  he and others                                                               
stood in  a trailer to  witness a  fire purposely started  at the                                                               
other end of  the trailer and doused by  an automatic residential                                                               
sprinkler   system.     He   said  he   was   impressed  by   the                                                               
demonstration, because  while a commercial sprinkler  system will                                                               
not be  set off before  reaching 200-250 degrees  Fahrenheit, the                                                               
residential  sprinkler system  will activate  at 135-155  degrees                                                               
Fahrenheit.   Furthermore,  the residential  sprinkler sends  out                                                               
mist, so it uses much less water than the commercial sprinklers.                                                                
                                                                                                                                
REPRESENTATIVE  SEATON  said   the  availability  of  residential                                                               
sprinklers gives Alaskans a great  opportunity to protect against                                                               
fire-related  loss.   He said  sprinklers can  be retrofitted  in                                                               
homes.  He related that  currently there are incentives available                                                               
for people  who put  sprinkler systems in  their homes  when they                                                               
are built;  however, those systems require  the national standard                                                               
of one-inch pipe and a coverage  of 100 percent of the structure.                                                               
Representative  Seaton reported  that almost  all the  fires that                                                               
occur in  Alaska in  non-smoking households  take place  near the                                                               
cooking area, fireplace, or boiler/furnace.   He indicated that a                                                               
sprinkler head  can cover a 12-foot  radius.  He stated  that the                                                               
purpose of  HCR 20 is  to encourage the government  and insurance                                                               
companies to give a credit  on homeowners' insurance for Alaskans                                                               
who retrofit sprinklers  in their homes to  cover "the vulnerable                                                               
parts of their home where most of the fires occur."                                                                             
                                                                                                                                
8:32:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  noted that "platinum, gold,  and silver                                                               
stars" are listed on page 1,  line 14, [referring to the "various                                                               
levels  of  sprinkler coverage"].    He  asked if  Representative                                                               
Seaton would like  an amendment to add the  bronze star mentioned                                                               
in a handout in the committee packet.                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON said the amendment is not necessary.                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG  stated his  support of  the resolution.                                                               
He asked the sponsor if he  would like language added to the bill                                                               
which  would  require  a  progress report  related  to  the  fire                                                               
marshal's  compliance with  the resolution,  perhaps to  be given                                                               
after a year or two.                                                                                                            
                                                                                                                                
REPRESENTATIVE SEATON  answered that  he is comfortable  with the                                                               
resolution without a report requirement.                                                                                        
                                                                                                                                
8:34:39 AM                                                                                                                    
                                                                                                                                
[Following  is   a  video  from  YouTube,   called,  "Residential                                                               
sprinklers demonstration."]                                                                                                     
                                                                                                                                
8:38:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON indicated  that the  residential sprinkler                                                               
can be mounted  directly onto overhead water line  pipes, such as                                                               
are found in furnace rooms.                                                                                                     
                                                                                                                                
8:39:08 AM                                                                                                                    
                                                                                                                                
[Following is a video from  YouTube, entitled, "Fresno Fire PSA -                                                               
Fire Sprinkler."]                                                                                                               
                                                                                                                                
8:40:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  noted  that  included  in  the  committee                                                               
packet is:   a draft plan  produced by the fire  marshal in 2006,                                                               
and a  report showing  that although  [smoke detectors]  are very                                                               
important,  fire sprinklers  are actually  what save  lives.   He                                                               
noted  that   there  were   representatives  from   various  fire                                                               
departments  available to  testify,  as well  as  the state  fire                                                               
marshal.   He said the Department  of Labor "does not  even see a                                                               
fiscal   note   attached  with   this,"   because   any  of   the                                                               
certifications necessary are already in place.                                                                                  
                                                                                                                                
8:42:14 AM                                                                                                                    
                                                                                                                                
KELLY  NIKALOLO, Assistant  Fire  Marshal, Division  of Fire  and                                                               
Life Safety,  Central Office, Department of  Public Safety (DPS),                                                               
reported   that    according   to   the   United    States   Fire                                                               
Administration,   in    2005,   the   United    States   suffered                                                               
approximately 396,000 residential fires,  which resulted in about                                                               
3,055  deaths.   Those statistics,  he said,  do not  account for                                                               
emotional loss  of loved ones  and sentimental possessions.   Mr.                                                               
Nikalolo stated that  even with [these statistics  which show] an                                                               
abysmal loss  of life, there  is still a  "substantial resistance                                                               
to requiring  residential sprinklers in new  construction today."                                                               
Furthermore, he indicated  that there would be no  way to support                                                               
such a requirement  in Alaska.  He said the  Department of Public                                                               
Safety  finds the  aforementioned  statistics  unacceptable.   He                                                               
stated, "It's  incumbent upon us  to value those  properties that                                                               
embrace the  responsibility of their  own safety and  reward them                                                               
for exercising uncommon sense and farsightedness."                                                                              
                                                                                                                                
MR. NIKALOLO said  that as described in  the proposed resolution,                                                               
the fire marshal would recognize  levels of fixed fire protection                                                               
installed  in  single family  dwellings  through  a program  that                                                               
would  be called,  "the  Residential Safety  Star  Program."   He                                                               
explained that the fixed protection  system would be installed by                                                               
qualified  installers,  as permitted  under  13  AAC 50.035,  "or                                                               
otherwise approved  by the manufacturer  in concurrence  with the                                                               
State Fire Marshal's Office."                                                                                                   
                                                                                                                                
MR. NIKALOLO stated:                                                                                                            
                                                                                                                                
     We feel we  need that change in culture.   For too long                                                                    
     our society  has rewarded victim  status to  people who                                                                    
     have fires occur  in their homes.   We risk firefighter                                                                    
     and family member's lives to  accidents and normal acts                                                                    
     of  carelessness.   We reward  those incidents  with an                                                                    
     outpouring  of  compassion, positive  affirmation,  and                                                                    
     financial  assistance.   Shouldn't  we reward  positive                                                                    
     proactive  outcome   rather  than   rewarding  negative                                                                    
     results?                                                                                                                   
                                                                                                                                
MR.  NIKALOLO  said  HCR  20   would  bring  forth  a  voluntary,                                                               
positive,  individual approach  to  fire  safety within  Alaska's                                                               
homes and would  provide the means to reward  families who invest                                                               
to protect the security of  their homes by installing residential                                                               
fire sprinkler suppression systems.                                                                                             
                                                                                                                                
8:45:27 AM                                                                                                                    
                                                                                                                                
MR. NIKALOLO related  a story wherein about 400  homes were built                                                               
in the North Slope Borough in  the early '90s, each home equipped                                                               
with sprinkler heads.  Since that  time, there have been a couple                                                               
instances  where residents  there have  been inebriated  and fell                                                               
asleep while smoking, and woke up  "wet but alive."  Mr. Nikalolo                                                               
said, "We look  at that program as being kind  of the keystone of                                                               
what we're trying to accomplish here."                                                                                          
                                                                                                                                
8:46:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  asked  Mr.   Nikalolo  to  clarify  the                                                               
meaning of the language on page 2, lines 11-13, which read:                                                                     
                                                                                                                                
     BE  IT  RESOLVED  that  the  Alaska  State  Legislature                                                                  
     encourages  the state  fire  marshal  to formalize  the                                                                    
     model residential  fire sprinkler  system program  as a                                                                    
     statewide program;                                                                                                         
                                                                                                                                
8:46:40 AM                                                                                                                    
                                                                                                                                
MR. NIKALOLO  prefaced his answer by  noting that he was  not [in                                                               
the  department]  in  '96  "when   this  was  first  put  forth."                                                               
Notwithstanding that,  he estimated that the  language means that                                                               
the legislature  would, outside of  bill form, give  its blessing                                                               
for the  state marshal to go  forward with the program.   He said                                                               
the program has no added cost  or labor requirements.  He said he                                                               
looks at the  language as "a nondescript  statement," because "it                                                               
doesn't direct  anything, as  far as program  is concerned."   He                                                               
concluded, "I  think it's just kind  of lending the name  and the                                                               
power of the  legislature in support of this."   In response to a                                                               
follow-up  question  from  Representative Johansen,  he  said  he                                                               
thinks the reason  the fire marshal would  like the legislature's                                                               
backing for a program that  costs nothing is because that support                                                               
will lend greater weight and increase public awareness.                                                                         
                                                                                                                                
8:49:09 AM                                                                                                                    
                                                                                                                                
ERNIE   MISEWICZ,  Fire   Marshal,  Fairbanks   Fire  Department,                                                               
testified in  support of HCR  20.   He indicated that  the public                                                               
views fires as  something that happens to other  people, and they                                                               
do not  give them much  thought.  Mr. Misewicz  said he is  a 34-                                                               
year veteran  of the  fire service  and has  seen first  hand the                                                               
devastation caused by fire, has  carried children and adults from                                                               
fires who were either injured or  killed, and has seen many lives                                                               
turned upside down and people displaced due to fire.                                                                            
                                                                                                                                
MR. MISEWICZ stated that people  believe that the fire department                                                               
is there to protect them and  "save the day," whereas in reality,                                                               
the fire  departments do not  have the  chance to win  the battle                                                               
with fire.  He said, "With  the rapid change in technology in the                                                               
way  that  we  build  and   furnish  our  home,  fire  now  grows                                                               
exponentially."   He  explained  that living  rooms  are full  of                                                               
large quantities  of flammable solids  that cause fires  to build                                                               
so  greatly.   He relayed,  "Fires now  are reaching  a point  of                                                               
flashover  within less  than two  minutes from  the start  of the                                                               
fire."   Mr. Misewicz  said great strides  have been  made toward                                                               
requiring early detection in homes,  but "we still lack the means                                                               
to  have that  early intervention;  the means  to suppress  these                                                               
fires."     He  said  fire  departments   strongly  believe  that                                                               
residential sprinklers are the answer.                                                                                          
                                                                                                                                
MR. MISEWICZ  said builders have  said they would  put sprinklers                                                               
in residences only if there would  be an increase in the value of                                                               
the home.   He explained  that construction costs are  tight, and                                                               
if  the builder  cannot have  that  extra cost  of the  sprinkler                                                               
system  realized in  the  bottom  line, he/she  is  not going  to                                                               
install the sprinklers.  He  emphasized the need to encourage the                                                               
installation  of  sprinkler  systems  in homes,  as  well  as  in                                                               
commercial buildings throughout  the entire state.   He said this                                                               
can be  done in many ways:   by changing building  codes, through                                                               
breaks in  insurance rates, by  increasing the value  of property                                                               
in which  recognized sprinkler systems exist,  and by recognizing                                                               
the full  appraisal value  for the life  of that  property rather                                                               
than just  in the year  in which it was  installed.  He  said tax                                                               
breaks alone are  not enough to off-set the cost  of installing a                                                               
sprinkler system.   He mentioned  the possibility  of "low-income                                                               
loans."                                                                                                                         
                                                                                                                                
MR. MISEWICZ  stated that the Fairbanks  Fire Department strongly                                                               
supports both the installation of  residential sprinklers and HCR
20 - the  proposed resolution being one of the  tools in the tool                                                               
box that will  help promote installation of sprinklers.   He said                                                               
there are  groups working  to make  changes to  residential code;                                                               
however,  "there's still  a lot  of  opposition out  there."   He                                                               
concluded:                                                                                                                      
                                                                                                                                
     If we want  to impact the devastation  caused by fires,                                                                    
     especially in  the home,  we need  to start  by passing                                                                    
     the resolution,  and we  need to look  ... for  ways to                                                                    
     promote  and  encourage   residential  sprinklers,  and                                                                    
     maybe, at some point, requiring  them.  This way we can                                                                    
     go over there and save lives.                                                                                              
                                                                                                                                
8:53:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   mentioned    an   initiative   being                                                               
considered  in  Fairbanks  that would  increase  the  residential                                                               
property tax exemption, which would  result in a reduction in the                                                               
amount  of money  that is  available  to fund  firefighting.   He                                                               
asked,  "How would  that  sort  of thing  affect  the ability  of                                                               
people  to protect  their homes  with fire  suppression and  fire                                                               
fighting from the local fire department?"                                                                                       
                                                                                                                                
MR.  MISEWICZ  said  he  is not  familiar  with  the  initiative.                                                               
Notwithstanding that,  he said  early suppression  efforts reduce                                                               
the amount of time and effort  required of the fire department by                                                               
the time it arrives at the scene of a fire.                                                                                     
                                                                                                                                
8:55:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOLL  asked  what  the added  cost  would  be  to                                                               
install a  sprinkler system in  a 2,000-square-foot  residence if                                                               
residential sprinklers were made mandatory.                                                                                     
                                                                                                                                
MR.  MISEWICZ said  he has  been  told that  retrofitting a  home                                                               
costs  approximately  $1.50  per square  foot,  while  installing                                                               
sprinklers in a new home costs  roughly $.90 per square foot.  He                                                               
noted that the  cost equates to the expense  of installing carpet                                                               
in a home.                                                                                                                      
                                                                                                                                
8:57:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON,  in   response   to   a  question   from                                                               
Representative  Gruenberg, said  he  is not  aware  of any  other                                                               
jurisdictions that  have mandatory requirements  [for residential                                                               
sprinkler systems].   He  reminded Representative  Gruenberg that                                                               
the  program  that the  resolution  would  support is  completely                                                               
voluntary.   He pointed out  the difference  between retrofitting                                                               
homes  completely  and attempting  to  cover  85 percent  of  the                                                               
ignition  sources in  homes,  the  latter of  which  is what  the                                                               
resolution is  "trying to do."   He  said when people  talk about                                                               
mandatory   requirements,  they   are  generally   talking  about                                                               
"through  building codes."   Much  of Alaska,  he said,  does not                                                               
have  enforced building  codes  that affect  houses.   Since  the                                                               
resolution  aims  at  encouraging  all   of  Alaska  to  opt  for                                                               
sprinkler protection, the resolution  is not attempting to effect                                                               
something through mandatory building codes.                                                                                     
                                                                                                                                
8:58:52 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES closed public testimony.                                                                                       
                                                                                                                                
8:59:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN asked if  the resolution is attempting to                                                               
convince  insurance companies  to consider  deductions and  offer                                                               
incentives.                                                                                                                     
                                                                                                                                
8:59:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  offered his  understanding that  there are                                                               
two insurance  companies in Alaska that  currently offer credits,                                                               
but  those  credits  are  based  on  the  national,  100  percent                                                               
coverage throughout the entire home.   He said HCR 20 attempts to                                                               
get  credits  offered  "for  the  protection  from  the  ignition                                                               
sources that  generally occur within  Alaska."  He referred  to a                                                               
handout  in   the  committee  packet  that   shows  three  charts                                                               
depicting  fire  statistics  in  Alaska.    One  page,  entitled,                                                               
"Applicable  Fire Cause  Comparison (2005-2007),"  shows that  in                                                               
2007, nine  out of  fourteen fire-related  deaths were  caused by                                                               
heat  sources  -   the  cause  of  the  five   other  deaths  was                                                               
undetermined.   He  indicated that  the resolution  could have  a                                                               
huge  effect on  Alaskans, giving  the incentive  and ability  to                                                               
homeowners to protect themselves and their families in the home.                                                                
                                                                                                                                
9:00:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  indicated   that  the  resolution  does                                                               
nothing more  than make  a suggestion  to the  insurance company.                                                               
He asked if  there are other states in  which insurance companies                                                               
recognize partial coverage for "hot spot areas."                                                                                
                                                                                                                                
REPRESENTATIVE  SEATON responded  that  he is  not  aware of  any                                                               
other states  that do so.   He said most states  offer incentives                                                               
through building  codes, and  he reiterated  that there  are only                                                               
"some  centralized  municipalities  that  even  require  building                                                               
codes in Alaska."   He said the state fire  marshal has developed                                                               
the pilot  program and has indicated  it would be finalized.   He                                                               
said  insurance  companies'  charges are  supposed  to  represent                                                               
their "loss experience";  therefore, there would be  a reason for                                                               
the director of  insurance to be asking the  insurance company to                                                               
consider that.                                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHANSEN indicated that  some people had commented                                                               
on the  high rates of  plumbers, and  he pointed out  that simply                                                               
noting the cost  of the sprinklers does not include  the labor of                                                               
having them installed.   He observed that there is  a zero fiscal                                                               
note in the committee  packet.  He said he has  seen it happen in                                                               
the past  where the fiscal  note started  out at zero,  a program                                                               
was started,  and in ensuing  years requests were made  for money                                                               
to  keep the  program going.    He said  he is  curious why  [the                                                               
Department  of  Labor]  would  need   to  create  a  program  and                                                               
curriculum to  train licensed  plumbers to "cut  a pipe  and have                                                               
them put a 'T' in there."                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON explained that a  way to keep costs down is                                                               
to have  a homeowner do  the job  him/herself and have  a plumber                                                               
certify that  "the [sprinkler]  heads are  there."   He indicated                                                               
that this  would give more  authenticity, which would  assure the                                                               
insurance companies that the job was  done correctly.  He said it                                                               
may  cost more  than  $100 to  do that  certification,  but in  a                                                               
"normal" house, three sprinkler heads might be sufficient.                                                                      
                                                                                                                                
9:08:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN said the  bill sponsor has expressed that                                                               
the program  and curriculum exist;  therefore, he is  not certain                                                               
why  it  is  necessary  that   the  resolution  include  language                                                               
regarding the creation  of a program and curriculum.   He said he                                                               
would likely offer an amendment to delete that language.                                                                        
                                                                                                                                
9:08:55 AM                                                                                                                    
                                                                                                                                
GREY MITCHELL,  Director, Labor Standards and  Safety, Department                                                               
of   Labor   and   Workforce    Development,   in   response   to                                                               
Representative Johansen, confirmed  that the training curriculums                                                               
do  already exist,  so the  department would  not be  required to                                                               
expend effort to  develop a curriculum.  Since  the resolution is                                                               
"advisory," he  said, "a  plumber can get  the training  or not."                                                               
Those with the training will  get that additional training status                                                               
noted on their already existing license.                                                                                        
                                                                                                                                
MR.  MITCHELL,  in response  to  a  question from  Representative                                                               
Johansen,  explained   that  currently  a  plumber   can  install                                                               
sprinklers with  a standard plumbing  license.  He  explained, "I                                                               
think  what we're  talking about  here is  an advisory  where you                                                               
would have a  training program that's separate  from the standard                                                               
that a plumber could get, as  an addendum or an addition to their                                                               
plumbing  license,  for  sprinkler fitting,  specifically."    In                                                               
response to  a follow-up  question from  Representative Johansen,                                                               
he confirmed that  there are some training  programs that include                                                               
sprinkler  systems as  part of  their training  curriculum, while                                                               
others do not.                                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHANSEN  expressed concern  that another  hoop is                                                               
being created for  a plumber to jump through to  prove he/she can                                                               
do a skill that is already part of his/her repertoire.                                                                          
                                                                                                                                
MR.  MITCHELL  responded,  "I  think   that  that's  an  accurate                                                               
statement."                                                                                                                     
                                                                                                                                
9:12:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG queried, "Nothing  in this resolution or                                                               
what  you're   contemplating  would  require  a   plumber  to  be                                                               
certified in  that manner to  make a certification that  the home                                                               
has sprinklers, correct?"                                                                                                       
                                                                                                                                
MR. MITCHELL confirmed that is correct.                                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG continued,  "So, it's  not accurate  to                                                               
say  that there  would  be this  requirement, is  it?   ...  This                                                               
encourages you  to develop the  program so it would  be available                                                               
to plumbers  who wanted it; not  that they'd be required  to have                                                               
it to make the certification.  Isn't that correct?"                                                                             
                                                                                                                                
MR.  MITCHELL  answered  that's  correct;   it  would  not  be  a                                                               
requirement.  He explained, "I think  the issue is there would be                                                               
this question  of whether  or not the  plumber had  received that                                                               
training in order  to get whatever benefit  the insurance company                                                               
was providing.   So, although  it's not required, there  would be                                                               
some kind of a mechanism to  show that they had had that training                                                               
or not."                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked,  "If the  homeowner  wished  to                                                               
prove the  installation of complying  sprinklers, would  that ...                                                               
plumber have  to have  had that  certification, or  could another                                                               
plumber make the  certification to the homeowner  to be presented                                                               
to the  insurance company?   Would they  have to go  through your                                                               
program?"                                                                                                                       
                                                                                                                                
MR. MITCHELL  replied that  he really  does not  know.   He said,                                                               
"All that the  resolution asks us to do is  to develop a training                                                               
curriculum.   The curriculum is  already established, so,  ... at                                                               
that point  ... we're done.   These  secondary steps are  kind of                                                               
'what-ifs,' and  since it is  all advisory, I don't  know exactly                                                               
how it's going to develop."                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention  to [page  2], lines                                                               
21-22, which  notes that  the Department  of Labor  and Workforce                                                               
Development  would  work  with  the   state  fire  marshal.    He                                                               
suggested that the department would  also work with other groups,                                                               
such as unions.                                                                                                                 
                                                                                                                                
MR.  MITCHELL  agreed that  certainly  the  department would  get                                                               
industry  support  and input  on  the  training curriculum.    In                                                               
response to  a follow-up question from  Representative Gruenberg,                                                               
he  confirmed that  the  other  input would  come  not only  from                                                               
unions, but also from industry groups.                                                                                          
                                                                                                                                
9:14:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  the  sponsor  of  the  proposed                                                               
resolution how he  would feel about including  "and other groups"                                                               
after "state fire marshal".                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  responded that  that would be  fine, since                                                               
the  whole idea  is  to  create a  synergy.    He suggested  that                                                               
instead  of  just  "train  licensed  plumbers",  the  words  "and                                                               
certify" could  be added.   He  explained that  the issue  is not                                                               
about  how  to  solder pipes  and  put  in  a  'T' -  it's  about                                                               
determining whether the  sprinkler head is adequate  to cover the                                                               
area.   He offered further details.   He stated that  if the fire                                                               
marshal recognizes  that preventing  fires in  the aforementioned                                                               
limited areas is of the greatest  benefit, than many lives can be                                                               
saved in Alaska.                                                                                                                
                                                                                                                                
9:17:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  said she  can see  how the  resolution could                                                               
have  a  ripple  effect,  and she  expressed  concern  that  [the                                                               
resolution]  is  "much  more  than  meets the  eye."    She  said                                                               
different  homes  are  made  out   of  different  materials,  for                                                               
example.   There is a lot  more to the resolution  than "a simple                                                               
intent to prevent fires."                                                                                                       
                                                                                                                                
9:18:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN asked Mr. Mitchell  if he has the ability                                                               
currently  to  exclude plumbers  who  do  not have  the  required                                                               
"sticker."                                                                                                                      
                                                                                                                                
MR.  MITCHELL answered  that the  department's current  authority                                                               
lies in  statute and requires  anyone working on a  potable water                                                               
system to hold a plumber's  "certificate of fitness" license.  He                                                               
said, "These  systems in  the residential arena  are going  to be                                                               
part of that potable  water system.  So, in order  to work on the                                                               
potable water  system, they would  have to have  that certificate                                                               
of fitness."   An  exception he  noted would be  if a  plumber is                                                               
working in a community with less  than 2,500 people.  In response                                                               
to a  follow-up question from  Representative Johansen,  he said,                                                               
"I guess I'm  kind of having trouble making the  tie-in with this                                                               
bill, because  I don't  think that  the bill  has anything  to do                                                               
with that  requirement."   He said if  someone is  doing plumbing                                                               
work that is  subject to the Uniform Plumbing Code  because it is                                                               
part  of the  potable water  system, thus  currently requiring  a                                                               
certificate of fitness, that person  does not need a sticker that                                                               
says he/she has  had any training in sprinkler  fitting or "those                                                               
kinds of things."                                                                                                               
                                                                                                                                
9:20:39 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  ROSES observed, "When you  say they have to  have the                                                               
certification; that's only if you're going  to get a license as a                                                               
certified  plumber in  the  state.   If  I'm  a  homeowner -  I'm                                                               
building my own home - I  don't have to have a certification, and                                                               
there is no regulation by  the Department of Labor [and Workforce                                                               
Development] that governs that.  ...  I do have to get a building                                                               
inspection  in  my municipality,  but  I  don't  have to  have  a                                                               
certification.  So,  you're only talking about  for licensure, is                                                               
that correct?"                                                                                                                  
                                                                                                                                
MR. MITCHELL responded that's correct.                                                                                          
                                                                                                                                
REPRESENTATIVE   JOHANSEN  restated   his  previously   expressed                                                               
concern that  although the bill  has no  weight in law,  when the                                                               
legislature pushes  in one direction,  the department may  end up                                                               
coming back  with requests for  expenditures.  He said  he agrees                                                               
with the intent  of the bill; however, he has  a problem with the                                                               
aforementioned language on page 2, lines 21-24.                                                                                 
                                                                                                                                
9:22:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  if  lay people  could  also  be                                                               
trained by the department.                                                                                                      
                                                                                                                                
MR. MITCHELL  said he does  not see  any reason why  the training                                                               
could not be offered to anyone who wished it.                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  said he had included  licensed plumbers in                                                               
the language  of the resolution  because in most  places building                                                               
inspectors  are  not required.    He  said plumbers  who  install                                                               
sprinkler systems  currently are already  licensed to do  so, but                                                               
"this would  allow the other  plumbers that haven't  been trained                                                               
in sprinkler systems to get that certification."                                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG  stated that he fully  supports the bill                                                               
and would not offer an  amendment unless the sponsor approved it.                                                               
He asked  if offering certification  to homeowners who  wished to                                                               
install  sprinklers simply  for  the purpose  of upgrading  their                                                               
homes would be contrary to the purpose of HCR 20.                                                                               
                                                                                                                                
REPRESENTATIVE SEATON responded no.                                                                                             
                                                                                                                                
REPRESENTATIVE  GRUENBERG said  he  would like  to encourage  the                                                               
average person  [to upgrade his/her home  by installing sprinkler                                                               
systems].                                                                                                                       
                                                                                                                                
9:26:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN asked  Mr.  Mitchell  if the  department                                                               
could handle allowing  anyone to come before it and  say, "Hey, I                                                               
want to  do this," and  if there would  be zero fiscal  impact if                                                               
that should happen.                                                                                                             
                                                                                                                                
MR. MITCHELL responded yes.  He  explained the reason is that the                                                               
curriculums already exist.                                                                                                      
                                                                                                                                
9:26:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL said she  foresees that residential sprinkler                                                               
systems  could become  mandatory  at some  point  in the  future,                                                               
which   would  have   tremendous  impact   on  homebuilding   and                                                               
insurance.                                                                                                                      
                                                                                                                                
The committee took an at-ease from 9:27:49 AM to 9:30:21 AM.                                                                
                                                                                                                                
9:30:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG,  in response to Vice-Chair  Roses, said                                                               
the House State Affairs Standing  Committee is the last committee                                                               
of referral  for HCR  20 before  the resolution  is heard  by the                                                               
House Rules Standing Committee.                                                                                                 
                                                                                                                                
9:33:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   moved  Conceptual  Amendment   1,  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, line 22, following fire marshal:                                                                                   
          Delete ","                                                                                                            
          Insert "and other groups"                                                                                             
                                                                                                                                
     Page 2, line 23:                                                                                                           
          Delete "create a program and a curriculum to"                                                                         
                                                                                                                                
     Page 2, line 23, between "train" and "licensed":                                                                           
          Insert "and certify"                                                                                                  
                                                                                                                                
     Page 2, line 23, between "plumbers" and "install":                                                                         
          Insert "and others"                                                                                                   
                                                                                                                                
REPRESENTATIVE DOLL [objected for discussion purposes].                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON,  in   response  to  Representative  Doll,                                                               
confirmed  that  the  reason  for deleting  the  reference  to  a                                                               
program and  curriculum is that those  are already in place.   He                                                               
noted that  since Representative  Gruenberg had  moved Conceptual                                                               
Amendment  1, with  "and other  groups" added  after "state  fire                                                               
marshal", the addition of "and  others" after "licensed plumbers"                                                               
is not  needed.   He said  "others" would  be certified,  but the                                                               
state would not be getting into a training program for them.                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  Representative  Seaton  how  he                                                               
would like the language of Conceptual Amendment 1 changed.                                                                      
                                                                                                                                
REPRESENTATIVE SEATON suggested that the language should read:                                                                  
                                                                                                                                
      working with the state fire marshal and other groups                                                                      
      to train and certify licensed plumbers to install or                                                                      
     certify residential fire sprinkler systems.                                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG  explained the purpose  behind including                                                               
"and others".                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON said  he does  not have  any objection  to                                                               
leaving  that language  in  the amendment;  however,  he said  he                                                               
wants the legislative intent clear  that "we're not talking about                                                               
a workforce development program" where training take place.                                                                     
                                                                                                                                
9:36:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   stated  for  the  record   that  upon                                                               
adoption of  Conceptual Amendment  1, page  2, lines  21-24 would                                                               
read as follows:                                                                                                                
                                                                                                                                
     FURTHER  RESOLVED  that  the Alaska  State  Legislature                                                                  
     encourages  the  Department   of  Labor  and  Workforce                                                                    
     Development, working  with the  state fire  marshal and                                                                    
     other groups,  to train  and certify  licensed plumbers                                                                    
     and  others  to   install  residential  fire  sprinkler                                                                    
     systems.                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG said,  "I don't know if  I'm a homeowner                                                               
if you're  going to, quote, 'certify'  me, but I think  the broad                                                               
sense is that the training is available."                                                                                       
                                                                                                                                
REPRESENTATIVE  DOLL  said  she  just  received  a  note  from  a                                                               
constituent who  is a  member of a  sprinkler fitters'  union and                                                               
"thinks  this is  diluting it."   She  asked if  the sponsor  has                                                               
spoken with  members of the union  and whether "this is  going to                                                               
be a potential problem."                                                                                                        
                                                                                                                                
9:37:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON replied that he  thinks the concern is that                                                               
the amendment  would somehow  affect commercial  sprinkler system                                                               
installation.  He emphasized that it would not.                                                                                 
                                                                                                                                
9:38:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG said  he  thinks  the language  clearly                                                               
specifies   that   the   sprinklers  affected   are   residential                                                               
sprinklers.                                                                                                                     
                                                                                                                                
9:39:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOLL  withdrew her  objection.    There being  no                                                               
further objection, Conceptual Amendment 1 was adopted.                                                                          
                                                                                                                                
9:39:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN moved  to report HCR 20,  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no objection,  CSHCR
20(STA)  was reported  out of  the House  State Affairs  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
HB 406-COMPETITIVE BIDDING FOR BALLOT PREP                                                                                    
                                                                                                                                
9:39:51 AM                                                                                                                    
                                                                                                                                
VICE CHAIR ROSES  announced that the final order  of business was                                                               
HOUSE  BILL  NO. 406,  "An  Act  relating  to a  requirement  for                                                               
competitive bidding on contracts  for the preparation of election                                                               
ballots."                                                                                                                       
                                                                                                                                
9:40:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  adopt  the proposed  committee                                                               
substitute  (CS)  for  HB   406,  Version  25-LS1487\C,  Bullard,                                                               
2/28/08, as  a work draft.   There being no objection,  Version C                                                               
was before the committee.                                                                                                       
                                                                                                                                
9:40:34 AM                                                                                                                    
                                                                                                                                
RENEE  LIMOGE,  Staff,  Representative  Anna  Fairclough,  Alaska                                                               
State Legislature, introduced HB  406 on behalf of Representative                                                               
Fairclough, prime  sponsor.  She said  the intent of the  bill is                                                               
to open  the competitive  bidding process and  to allow  for fair                                                               
business  practices  in Alaska.    The  bill includes  an  Alaska                                                               
bidder and product preference and  would not subject the Division                                                               
of Elections  to the procurement  code.  Furthermore,  Ms. Limoge                                                               
said, the  intent is not to  affect the integrity of  the ballots                                                               
printed  or Alaska's  election process.   Currently,  there is  a                                                               
sole source  contract for the  printing of election  ballots, and                                                               
the bill  sponsor would  like to  open up  that process  to allow                                                               
other Alaska printers the opportunity to apply for the business.                                                                
                                                                                                                                
9:41:44 AM                                                                                                                    
                                                                                                                                
MS. LIMOGE, in  response to a question  from Representative Doll,                                                               
said currently there  is one vendor that is  certified.  However,                                                               
she offered  her understanding that the  certification process is                                                               
no longer [required],  so other printers would be  able to apply.                                                               
When  the   certification  process   did  exist,  the   cost  was                                                               
prohibitive.  She added, "And when it was a closed process,                                                                     
there wasn't much need to do that."                                                                                             
                                                                                                                                
9:42:26 AM                                                                                                                    
                                                                                                                                
KERRY NOBLIN, Peninsula Printing, testified in support of HB
406, as follows:                                                                                                                
                                                                                                                                
     Currently  the  Division  of Elections  is  contracting                                                                    
     this  work  through  one   shop  without  giving  other                                                                    
     qualified  printing contractors  the chance  to bid  on                                                                    
     the  job.    I  can understand  that  the  Division  of                                                                    
     Elections  has become  complacent and  comfortable with                                                                    
     their  current  arrangement  and  their  sole  printing                                                                    
     contractor,  but  the  efforts that  go  into  printing                                                                    
     these   ballots    are   neither   a    technical   nor                                                                    
     extraordinary effort.   The printing of  state election                                                                    
     specific ballots is  a rather simple job  when it comes                                                                    
     down  to the  process of  completing it.   The  largest                                                                    
     challenge  that  face[s]  any shop  competing  for  the                                                                    
     contract is the sheer volume  of that ballot, but there                                                                    
     are  many  printing  contractors  in  Alaska  that  are                                                                    
     capable of handling these quantities.                                                                                      
                                                                                                                                
     Without putting  these ballots out  for bid,  the state                                                                    
     is  leaving  itself to  the  mercy  of one  contractor,                                                                    
     allowing this contractor to dictate  terms to the state                                                                    
     with   regards  to   [the]   pricing,  quality,   [and]                                                                    
     turnaround of this  job.  It is a bad  policy to uphold                                                                    
     and it  also stifles a strong,  competitive atmosphere.                                                                    
     With state election ballots being  put up for bid among                                                                    
     qualified Alaskan printers, not  only will the state be                                                                    
     stimulating  positive  economic  growth in  the  Alaska                                                                    
     printing  industry, but  it will  also ensure  that the                                                                    
     state is  getting the  best deal  possible in  terms of                                                                    
     price, quality, and turnaround.                                                                                            
                                                                                                                                
     The  public bid  process  of the  contracting of  other                                                                    
     election ballots  has been successful in  the past, and                                                                    
     continues  to  be  a  success  on  a  municipality  and                                                                    
     borough level.                                                                                                             
                                                                                                                                
     In  closing, it  is  my belief  that  the state  should                                                                    
     support  this bill.    The bill  not  only ensures  the                                                                    
     state is getting  the best deal possible,  it will help                                                                    
     stimulate  economic   growth  in  the   local  printing                                                                    
     industry.                                                                                                                  
                                                                                                                                
9:44:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  asked Mr.  Noblin why he  thinks the  use of                                                               
one printing  company puts the state  in a position of  having to                                                               
"obey this vendor."                                                                                                             
                                                                                                                                
MR. NOBLIN  answered that because  the state is not  giving other                                                               
vendors the  opportunity to bid on  projects, there is no  way of                                                               
knowing whether  the single  vendor being  used is  charging fair                                                               
prices; there is no means of comparison.                                                                                        
                                                                                                                                
9:46:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention  to a letter  in the                                                               
committee  packet,  from Kevin  Fraley,  the  general manager  of                                                               
Super Software  Inc. "DBA -  Print Works," dated March  12, 2008.                                                               
He said  he would like  to know how  Mr. Noblin would  respond to                                                               
the information in Mr. Fraley's letter.                                                                                         
                                                                                                                                
9:47:36 AM                                                                                                                    
                                                                                                                                
PATRICK  FOSTER,  A.T.  Publishing  and  Printing,  testified  in                                                               
support  of HB  406.   He  said  he has  worked  in the  printing                                                               
industry in  Alaska for nearly  30 years.   He said the  State of                                                               
Alaska  used  Diebold  Election Systems'  ("Diebold")  electronic                                                               
ballot readers for  the purpose of tallying  votes from statewide                                                               
elections.   Until recently, he noted,  Diebold required printing                                                               
companies  that  print  ballots  used   in  its  machines  to  be                                                               
certified by the  company.  At the time that  the State of Alaska                                                               
adopted the use of Diebold's  ballot readers in the mid-1990s, no                                                               
companies  in Alaska  were certified.   Shortly  after, a  small,                                                               
Alaska  printing  company  was  certified, and  the  Division  of                                                               
Elections  has "sole-sourced  approximately  $2  million to  this                                                               
company since."   He  said that  has been  done despite  the fact                                                               
that a number  of Alaska printing companies have  voiced a desire                                                               
to  be included  in the  process.   Mr. Foster  said his  company                                                               
became  a  certified Diebold  printer  in  2003; however,  today,                                                               
Diebold  no  longer  requires  certification,  which  removes  an                                                               
expensive hurdle for many Alaska printing companies.                                                                            
                                                                                                                                
MR.   FOSTER said he  is aware that  there is probably  a certain                                                               
comfort level that  the division has working with  a printer that                                                               
has  proven to  do a  good job.   He  said he  works to  give his                                                               
clients  that  same  comfort,  and   recently  has  succeeded  in                                                               
securing  the ballot-printing  contract for  the Municipality  of                                                               
Anchorage.   He noted  that Anchorage  formerly sole  sourced its                                                               
ballot  printing  out  to  another   printer  before  making  the                                                               
decision to  put the ballot printing  out to bid.   The municipal                                                               
clerk, he  said, was  concerned about moving  forward with  a new                                                               
printer,  but  has since  found  that  the  change was  not  only                                                               
relatively  easy,  but  also  that  the  City  of  Anchorage  has                                                               
benefitted by paying  less for its ballots.  He  relayed that his                                                               
company  has printed  ballots for  the Municipality  of Anchorage                                                               
from  2005-2007, considered  by  Diebold to  be  among "the  most                                                               
difficult ballots in  the nation."  He said  the municipality has                                                               
put a new contract out for bid  this year.  Mr. Foster said, "I'm                                                               
certain that the  ... Division of Elections would  develop a fine                                                               
working  relationship with  any  printing company  that would  be                                                               
awarded the contract."                                                                                                          
                                                                                                                                
MR.  FOSTER said  some might  claim  that the  complexity of  the                                                               
State of Alaska ballots is reason  enough to leave things the way                                                               
they  are, but  he emphasized  that nothing  is further  from the                                                               
truth.   The  task of  printing  a few  hundred thousand  ballots                                                               
would be  daunting for  some small shops,  but those  shops would                                                               
not bid  on the project.   There are many companies  in the state                                                               
that are  fully capable  of handling  the volume  of work  in the                                                               
time required,  including the  packaging and  shipping logistics,                                                               
he said.   The ballots require careful  imprinting and packaging,                                                               
but are otherwise  easy to produce - nothing beyond  the scope of                                                               
many jobs  produced by dozens  of Alaska printing  companies each                                                               
year.  He said another concern  is that the Division of Elections                                                               
could be bogged down putting ballots  out to bid every two years.                                                               
Mr. Foster recommended that each  bid be awarded for one election                                                               
cycle, with "a performance option for a second."                                                                                
                                                                                                                                
9:51:00 AM                                                                                                                    
                                                                                                                                
MR.   FOSTER  stated   that  opening   the  election   ballot  to                                                               
competitive  bid  would  have  a  variety  of  positive  effects,                                                               
including the  likely savings of  a substantial amount  of money.                                                               
The level  playing field, he said,  would open the door  for more                                                               
Alaska printing  companies to  be involved,  which would  in turn                                                               
give those companies the opportunity  to upgrade their facilities                                                               
and improve  their standing in  both the industry and  the state.                                                               
Furthermore, the state would not have  to put all its eggs in one                                                               
basket by relying on a single printing company.                                                                                 
                                                                                                                                
9:52:26 AM                                                                                                                    
                                                                                                                                
GAIL FENUMIAI,  Director, Central Office, Division  of Elections,                                                               
Office of  the Lieutenant  Governor, explained  how HB  406 would                                                               
impact the  division's business  practices.   Prior to  2002, the                                                               
division had ballots printed by  a company other than the current                                                               
vendor - a  company outside of Alaska.  She  said the division is                                                               
thankful  to  have its  ballots  printed  inside the  state  now,                                                               
because  doing  so  alleviated many  of  its  concerns  regarding                                                               
getting ballots delivered on time, as well as other issues.                                                                     
                                                                                                                                
MS. FENUMIAI  stated that ballots  are the most  important aspect                                                               
of  conducting  an election.    The  ballot printing  process  is                                                               
complex and  requires a vendor  that needs to know  the processes                                                               
of the  division and  its timelines  in order for  the job  to be                                                               
done  correctly.   If  ballots are  printed  incorrectly and  not                                                               
received on  time, the  result could  be a  disenfranchisement of                                                               
voters  and  an  impairment  of   the  division.    Ms.  Fenumiai                                                               
emphasized the  importance of the  report and of trust  gained by                                                               
working with a  vendor.  She said the vendor  needs to be willing                                                               
to stick  with the division  in the instance where  something may                                                               
go  wrong.   She  offered an  example when,  in  2004, the  court                                                               
required  ballots to  be reprinted  due to  an initiative  ballot                                                               
language  summary,  and  the  division's  current  vendor  worked                                                               
around the  clock and was able  to get the ballots  reprinted and                                                               
delivered  on time,  so that  the  general election  was able  to                                                               
proceed as it was supposed to according to statute.                                                                             
                                                                                                                                
MS. FENUMIAI  relayed that the  division follows  the competitive                                                               
bid  process  for everything  else  it  is  required to  do,  for                                                               
example,  purchasing envelopes,  tally  books,  and the  official                                                               
election pamphlet.   She stated, "This  is one area that  we feel                                                               
is  very, very  difficult  ...."   She said  she  would give  the                                                               
committee  a  timeline  of statutory  requirements  that  make  a                                                               
competitive bid process impractical.                                                                                            
                                                                                                                                
9:55:06 AM                                                                                                                    
                                                                                                                                
MS. FENUMIAI stated that the  only competitive bid process she is                                                               
aware of  is what  is referenced in  the procurement  code, which                                                               
she  said  she believes  is  a  21-day, competitive,  sealed  bid                                                               
process.   She  said there  is some  time allowed  for a  protest                                                               
period.    She  related  that  although  she  is  not  personally                                                               
familiar  with  the procurement  code,  Vern  Jones, the  state's                                                               
chief  procurement officer,  was available  to answer  questions.                                                               
She continued:                                                                                                                  
                                                                                                                                
     The  division  has   very  tight  statutory  deadlines.                                                                    
     Moving  to a  competitive bid  process raises  concerns                                                                    
     that  the required  timelines couldn't  be met.   There                                                                    
     are 22 days  from the date the ballot  is certified for                                                                    
     the primary  election to the  date the ballots  need to                                                                    
     be issued in our offices.                                                                                                  
                                                                                                                                
9:56:04 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR  ROSES asked  Ms.  Fenumiai  if  she has  observed  a                                                               
significant  difference  between  a  ballot  on  the  day  it  is                                                               
certified and the same ballot several weeks before that.                                                                        
                                                                                                                                
MS. FENUMIAI said  she does not recall, but she  offered to  find                                                               
out  and  get  back  to  the  committee  with  an  answer.    She                                                               
continued:                                                                                                                      
                                                                                                                                
     For  the  general  election,  the  timeline  gets  even                                                                    
     tighter; there  are 16  days from  the date  [on] which                                                                    
     the ballot  is sent  to the printer  and the  date [on]                                                                    
     which the  ballots have  to be  back in  the division's                                                                    
     offices ready for  distribution.  And a lot  of that is                                                                    
     contingent on  when the primary election  is certified,                                                                    
     because  obviously  we can't  send  the  ballot to  the                                                                    
     printer until the primary is certified.                                                                                    
                                                                                                                                
     The division  is also concerned that  the lowest bidder                                                                    
     may not also  be the best bidder.  There  is a lot that                                                                    
     goes  on  other  than  just putting  a  template  on  a                                                                    
     printer and  printing ballots out.   The  printer tests                                                                    
     ballots to make  sure that the tiny marks  and the fold                                                                    
     marks - the  cut marks - are properly done.   So, it is                                                                    
     more  than just  a simple  copying job,  for lack  of a                                                                    
     better  word.   There's accountability  involved.   And                                                                    
     also, at  the same  time, many counties  throughout the                                                                    
     nation are  printing ballots, and ballot  printers need                                                                    
     to  know ahead  of time  if  they're going  to need  to                                                                    
     order  ballot   paper,  because  there   are  literally                                                                    
     thousands in  the nation that will  be printing ballots                                                                    
     for a general election in November.                                                                                        
                                                                                                                                
9:58:12 AM                                                                                                                    
                                                                                                                                
MS.  FENUMIAI,  in  response  to   a  series  of  questions  from                                                               
Representative  Doll, said  to the  best of  her knowledge  there                                                               
have been no problems related to  the present vendor and she does                                                               
not feel that  the division has been dictated to  by that vendor.                                                               
She said the division tells the  printer what, how much, and when                                                               
it needs  in terms of  ballots, and she said  to the best  of her                                                               
knowledge  the timelines  have  always been  met  by the  current                                                               
vendor.   The division decided in  2002 to find out  if there was                                                               
any printer  in the state  of Alaska  that would be  qualified to                                                               
print ballots.   At that  time, Diebold required  ballot printers                                                               
to be certified,  and Print Works in Homer had  gone through that                                                               
certification process.   The division  toured the plant,  met the                                                               
owner,  and felt  comfortable that  the  business understood  and                                                               
could meet  the division's needs,  concerns, and deadlines.   She                                                               
concluded, "Ever since then, things have been fine."                                                                            
                                                                                                                                
9:59:54 AM                                                                                                                    
                                                                                                                                
MS. FENUMIAI explained that the  length of the ballot can change,                                                               
but  the width  remains the  same.   In response  to a  follow-up                                                               
questions from Vice Chair Roses,  she confirmed that creasing and                                                               
folding issues  can differ  with the  size of the  page.   At the                                                               
time  the division  would put  out a  bid spec  for ballots,  she                                                               
said, it  "would not have  a genuine, true  idea if a  ballot was                                                               
going to be an  8 1/2 by 11-inch ballot [or] an  8 1/2 by 14-inch                                                               
ballot until much closer towards the election."                                                                                 
                                                                                                                                
10:00:27 AM                                                                                                                   
                                                                                                                                
VICE CHAIR ROSES  asked if the bidding process  would prevent the                                                               
division from  getting a  "variegated bid"  that would  allow the                                                               
printing  companies to  submit a  different bid  for each  of the                                                               
possible ballot sizes.                                                                                                          
                                                                                                                                
MS. FENUMIAI deferred to Mr. Jones.                                                                                             
                                                                                                                                
10:02:01 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON  said  he  has spent  some  time  in  the                                                               
printing business, and he suggested  that it may be efficient for                                                               
individual printers to "just buy the  bigger paper" and cut it to                                                               
size.                                                                                                                           
                                                                                                                                
10:02:30 AM                                                                                                                   
                                                                                                                                
VERN JONES,  Chief Procurement Officer, Central  Office, Division                                                               
of General  Services, Department  of Administration,  said during                                                               
the  bidding process  what  needs to  be  known, regarding  paper                                                               
used, is  "the mix of  how much of each  size and what  the price                                                               
would be" in order  to come up with an accurate  total.  He said,                                                               
"Representative Johnson's solution would  probably be much easier                                                               
to  implement  than simply  getting  pages  per different  price,                                                               
because  you wouldn't  know what  the mix  would be  to know  who                                                               
would actually be  cheaper until the last minute,  and that would                                                               
be too late."                                                                                                                   
                                                                                                                                
10:03:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN asked, "Can you make, basically, a deal                                                                 
that for this election cycle this company's going to ... be the                                                                 
printer, and then deal with the deadlines on it?"                                                                               
                                                                                                                                
MR. JONES said he generally is an advocate of competition;                                                                      
therefore "this" is a bit of a departure for him.  He explained:                                                                
                                                                                                                                
     It's not  so much the  time built into  the procurement                                                                    
     code, because the procurement  code doesn't apply here,                                                                    
     but just  practically how much  time they have  - given                                                                    
     the information they have when they  have it - to get a                                                                    
     bid out,  to get the  product -  the stock ship  by the                                                                    
     vendor, I understand  takes a couple of  months, to get                                                                    
     the testing done  - they have to  have preliminary bids                                                                    
     in and  ... all the machines  have to be tested  on the                                                                    
     ... ballots  that come back well  before they're ready.                                                                    
     Gail  mentioned reprints,  as well.   There's  shipping                                                                    
     time - once the printer has  its job done, they have to                                                                    
     be shipped  to all different  areas of the state.   So,                                                                    
     it's not so  much the time that  the procurement takes,                                                                    
     as  ... the  very restricted  amount of  time that  the                                                                    
     division has once they know what needs to be printed.                                                                      
                                                                                                                                
     And   again,  that's   not   any   reflection  on   the                                                                    
     capabilities of the printers out  there.  I don't think                                                                    
     the division's  made the leap that  the printer they're                                                                    
     using is  the only one that  can do the job;  it's just                                                                    
     that  the   time  involved   to  actually   effect  the                                                                    
     competition  is  very  tight,   and  I  would  probably                                                                    
     venture  to  say  that  in   some  instances,  in  some                                                                    
     election cycles, it's definitely  not practical to take                                                                    
     that time  to go  out and  get the  competitive bidding                                                                    
     that's required.                                                                                                           
                                                                                                                                
     Something else  I'd like to  mention is that  while the                                                                    
     bill doesn't subject the printing  of the ballot to the                                                                    
     procurement  code, it's  silent on  a number  of issues                                                                    
     that  the procurement  code would  probably be  used to                                                                    
     step in and  fill in the blanks.   For example, there's                                                                    
     no  ... protest  provisions in  the bill,  so we  would                                                                    
     likely   look  to   the  protest   provisions  of   the                                                                    
     procurement code to  fill in.  Those  ... entail giving                                                                    
     the vendor ten days after  an award is made to protest.                                                                    
     And then  there'd be the  time necessary to  respond to                                                                    
     the protest.                                                                                                               
                                                                                                                                
10:07:02 AM                                                                                                                   
                                                                                                                                
MR. JONES  said it is probably  very important to have  a comfort                                                               
level with  a printer.   That doesn't  necessarily mean  there is                                                               
only  one  printer  involved,  but there  are  other  factors  to                                                               
consider.  He opined that "if  this were going to be competed," a                                                               
request for  proposals (RFP) would  be what "you'd  want," rather                                                               
than a  bid process.   He explained that  with an RFP,  the state                                                               
would  be  able  to  examine  a  printer's  experience,  history,                                                               
capability,  physical plant,  and perhaps  financial credentials.                                                               
He stated,  "This speaks against the  bill, because an RFP  is an                                                               
even  longer procurement  process than  a bidding  process."   He                                                               
continued:                                                                                                                      
                                                                                                                                
     If  the  bill  simply  said  we  want  to  subject  the                                                                    
     printing  and ballots  to the  procurement code,  there                                                                    
     would be much more  flexibility there.  The procurement                                                                    
     code has  any number  of procurement  methods available                                                                    
     and exceptions, like  limited competition procurements,                                                                    
     and so on.  Now, I'm  not suggesting that that be done,                                                                    
     I'm  just  saying  that  there  would  be  a  lot  more                                                                    
     flexibility if that were the case.                                                                                         
                                                                                                                                
10:08:20 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN asked if one  company can be chosen for a                                                               
specific election  rather than undergoing another  bid or process                                                               
"every time you turn around."                                                                                                   
                                                                                                                                
MR. JONES responded that it would  be possible to do so; however,                                                               
the information  that would be necessary  in order to be  able to                                                               
fairly  evaluate  "one versus  the  other"  would depend  on  the                                                               
information that the division gets,  and "it doesn't get it until                                                               
...  18 days  before the  ballots are  needed to  be in  hand and                                                               
ready to be voted on."                                                                                                          
                                                                                                                                
10:10:19 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  if there  is any  language in  the                                                               
proposed  legislation  that  would   prevent  the  division  from                                                               
issuing  a  competitive bid  process,  effective  in 2010,  which                                                               
would  apply for  the next  five  years, and  repeat the  process                                                               
every five years thereafter.  He  said he thinks it would be ill-                                                               
advised to try to put a  bid out for every election, but supports                                                               
the idea  of contracts  every five  to seven  years.   He stated,                                                               
"Sixteen days  in the  printing world is  a lifetime,"  thus, the                                                               
time frame  does not concern him,  but quality control does.   He                                                               
said he could name a half  dozen printers who could print ballots                                                               
for the state.   He said he doesn't know if they  could do it for                                                               
a better price than the printer  the state currently uses, but he                                                               
doesn't think  the division  knows that  answer either,  which is                                                               
the purpose of [the  bill].  He said the state  could make a test                                                               
run be a requirement of the bid process.                                                                                        
                                                                                                                                
MR. JONES said there is nothing  in the language of the bill that                                                               
would prevent that from happening.   He suggested that "a bid may                                                               
not  be the  appropriate vehicle  for printing  a ballot  in this                                                               
case."                                                                                                                          
                                                                                                                                
REPRESENTATIVE JOHNSON said perhaps  the RFP process would apply.                                                               
He  said there  is a  system  by which  the state  could allow  a                                                               
competitive process to "enter  our election" without jeopardizing                                                               
the quality of  that election.  He said he  thinks the bill needs                                                               
to be considered  more closely.  He said, "There  is nothing that                                                               
should  keep this  from happening,  and quite  honestly, I  don't                                                               
know why  the Division of Elections  hasn't done it anyway."   He                                                               
said  he  thinks  the  state   is  probably  spending  more  than                                                               
necessary for its ballots.                                                                                                      
                                                                                                                                
10:14:18 AM                                                                                                                   
                                                                                                                                
MS. FENUMIAI responded  that timing is an issue.   She said there                                                               
are  a lot  of intricacies  involved  with printing  ballots.   A                                                               
significant amount of  testing is done at the  printer's shop and                                                               
at the  Division of Elections  to ensure that the  ballots record                                                               
votes properly in the optical scan units.                                                                                       
                                                                                                                                
VICE CHAIR  LYNN asked if Representative  Johnson's suggestion of                                                               
a  rotating bid  would allow  "time for  that to  take place  and                                                               
still have a competitive process."                                                                                              
                                                                                                                                
MS.  FENUMIAI replied  that she  believes  it would  be a  better                                                               
process than getting bids every two years.                                                                                      
                                                                                                                                
10:15:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE JOHANSEN asked  how often the layout  and the face                                                               
of the ballots actually change.                                                                                                 
                                                                                                                                
MS. FENUMIAI responded  that the ballot would be on  same type of                                                               
paper each  year; only  the names and  races would  change, along                                                               
with  the length  of  the ballot.   In  response  to a  follow-up                                                               
question from Representative Johansen,  she said the placement of                                                               
the names  of candidates and  the ovals  that are placed  next to                                                               
each name shift with each ballot.                                                                                               
                                                                                                                                
REPRESENTATIVE JOHANSEN said  he would like to know  how much the                                                               
cost of printing  ballots has increased in the last  six to eight                                                               
years.                                                                                                                          
                                                                                                                                
MS.  FENUMIAI noted  that, according  to  available records,  the                                                               
2004  [primary]  ballots  totaled $156,229.25;  general  election                                                               
ballots for  2004 cost  $264,546.28; and  the reprinting  of [the                                                               
general election]  ballots for 2004  cost $235,802.87.   The 2006                                                               
primary  ballots  cost  $181,632.00; the  2006  general  election                                                               
ballots  cost   $205,773.75.    In  response   to  Representative                                                               
Johnson, she  explained that  there had been  a court  order that                                                               
mandated the  ballot summary  language be changed  on one  of the                                                               
initiatives, which  required every  single 2004  general election                                                               
ballot  to  be  reprinted.    The  prices  fluctuate  because  of                                                               
quantity, size of the ballot, and paper [length], she noted.                                                                    
                                                                                                                                
10:18:48 AM                                                                                                                   
                                                                                                                                
MS.  FENUMIAI,  in response  to  a  question from  Representative                                                               
Doll, offered  more details  regarding the  certification process                                                               
previously required by Diebold.                                                                                                 
                                                                                                                                
10:19:50 AM                                                                                                                   
                                                                                                                                
JASON  HOOLEY,  Special   Assistant/Legislature,  Office  of  the                                                               
Lieutenant  Governor, testified  regarding the  practical aspects                                                               
of HB 406.  He stated  that the Office of the Lieutenant Governor                                                               
supports  competition;  however,   the  flexibility  afforded  by                                                               
current statute  has not led  to a situation without  standard or                                                               
lacking oversight.  Conversely,  that flexibility has allowed the                                                               
division to  explore a number of  areas that have led  to quality                                                               
assurance  and security  measures that  have served  the division                                                               
well.  That  said, he reported that the Office  of the Lieutenant                                                               
Governor  does  not oppose  bill,  but  asks that  the  committee                                                               
continue  to work  with  the division  to  address the  practical                                                               
concerns articulated by Ms. Fenumiai and Mr. Jones.                                                                             
                                                                                                                                
10:21:03 AM                                                                                                                   
                                                                                                                                
VICE CHAIR ROSES closed public  testimony, but said he may reopen                                                               
testimony for  Mr. Fraley if  he is  available to testify  at the                                                               
next committee hearing on HB 406.                                                                                               
                                                                                                                                
[HB 406 was heard and held.]                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
State Affairs Standing Committee meeting was adjourned at                                                                       
10:21:40 AM.                                                                                                                  
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