03/02/2010 09:00 AM Senate STATE AFFAIRS

        HJR 16-DISABLED VETERANS PROCUREMENT PREFERENCE                                                                     
                                                                                                                                
9:59:16 AM                                                                                                                    
CHAIR MENARD announced  the final order of business  would be HJR
. [CSHJR 16(L&C) was before the committee.]                                                                                   
                                                                                                                                
KAREN SAWYER, staff to Representative  Carl Gatto, sponsor of HJR
, said a service disabled veteran  is a veteran who possesses a                                                               
disability  rating letter  issued  by the  Department of  Veteran                                                               
Affairs  establishing a  service connected  rating between  1 and                                                               
100 percent disability. A veteran-owned  business means that same                                                               
veteran owns  at least  51 percent  of the  business or  stock or                                                               
performs   management   and   daily  business   operations.   The                                                               
procurement preference refers to  the 2003 Veterans Benefits Act,                                                               
which strengthened  a law allowing  service disabled  veterans to                                                               
go into business for themselves  by bidding on federal contracts.                                                               
Three percent  of all federally  budgeted dollars were to  be set                                                               
aside for  these business,  ensuring that  small business  in the                                                               
state owned by  these veterans were able to  received sole source                                                               
and  restriction competition  contracts  for  goods and  services                                                               
used  by  the federal  government.  However,  that has  not  been                                                               
happening.                                                                                                                      
                                                                                                                                
HJR 16 urges the President to  direct all federal agencies in the                                                               
state to fully comply with  the 3 percent procurement preference.                                                               
HJR  16  also  requests  the  house  and  senate  small  business                                                               
committees  and  committees  on veteran  affairs  to  hold  joint                                                               
oversight hearings,  in Alaska,  into the  refusal or  failure of                                                               
these  agencies  to  comply.  According  to  the  Small  Business                                                               
Administration, which  oversees the  program, as  of 2008  only 4                                                               
out of 24 federal agencies nationwide were meeting the goal.                                                                    
                                                                                                                                
10:02:51 AM                                                                                                                   
CHAIR MENARD opened public testimony.                                                                                           
                                                                                                                                
RIC DAVIDGE, National  Chairman, Economic Opportunities Committee                                                               
for Vietnam  Veterans of America and  In-state Council President,                                                               
Vietnam Veterans  of America, and  founding board  member, Alaska                                                               
Veterans  Business  Alliance  said U.S.  Presidents  have  signed                                                               
executive  orders and  all  agencies have  been  directed to  put                                                               
together strategic plans showing  implementation of the 3 percent                                                               
procurement  preference. And  yet,  particularly  in Alaska,  the                                                               
procurement officers say  they are too busy and this  is too much                                                               
trouble. He  said 300 service  disabled veteran  owned businesses                                                               
from  Alaska are  registered.  These  businesses are  discouraged                                                               
about  getting  involved  in  federal  procurement  contracts  in                                                               
Alaska which  are often in the  tens of millions of  dollars. The                                                               
Army Corps  of Engineers  has made a  significant effort  and has                                                               
exceeded the 3 percent set-aside showing that it can be done.                                                                   
                                                                                                                                
10:05:40 AM                                                                                                                   
A  state  resolution, focused  on  the  problem and  calling  for                                                               
oversight hearings, would bring needed attention to the problem.                                                                
                                                                                                                                
TIM WHEELER, National  Director, Economic Opportunities, Veterans                                                               
of  Modern  Warfare, Washington  D.C.  and  board member,  Alaska                                                               
Veteran's Business  Alliance, said the  Veterans Entrepreneurship                                                               
Act was passed  nearly 11 years ago and is  still not working. He                                                               
has attended  many meetings, particularly with  the Department of                                                               
Defense (DOD) in Anchorage, who told  him the goals are being met                                                               
nationwide  but nationwide  goals  were never  met. Veterans  who                                                               
want  to go  into business  for themselves  are disheartened.  He                                                               
noted HJR 16 has no fiscal note asked for immediate passage.                                                                    
                                                                                                                                
10:08:30 AM                                                                                                                   
SENATOR  MEYER asked  Mr. Wheeler  if other  states have  similar                                                               
resolutions.                                                                                                                    
                                                                                                                                
MR. WHEELER replied yes but does  not know which states off hand.                                                               
Several organizations are involved at a national level.                                                                         
                                                                                                                                
10:09:55 AM                                                                                                                   
CHAIR MENARD closed public testimony.                                                                                           
                                                                                                                                
10:10:11 AM                                                                                                                   
SENATOR  MEYER  moved  to  report  HJR  16  from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  MENARD announced  that  without  objection, CSHJR  16(L&C)                                                               
moved from the Senate State Affairs Standing Committee.