03/26/2013 09:00 AM Senate STATE AFFAIRS

                                                                                                                                
           SB 63-CONTRACTS FOR PREPARATION OF BALLOTS                                                                       
                                                                                                                                
9:55:23 AM                                                                                                                    
CHAIR DYSON  announced that the  final order of business  would be                                                              
SB 63.                                                                                                                          
                                                                                                                                
LAURA   PIERRE,   Staff,   Senator   Anna   Fairclough,   provided                                                              
information related to  SB 63 on behalf of the  sponsor. She noted                                                              
a work draft in the packets for the members to consider.                                                                        
                                                                                                                                
CHAIR DYSON asked if it was the N version of SB 63.                                                                             
                                                                                                                                
MS. PIERRE said that was correct.                                                                                               
                                                                                                                                
9:56:05 AM                                                                                                                    
SENATOR GIESSEL  moved to adopt  CSSB 63, labeled  28-LS0459\N, as                                                              
the working draft. There being no objection, it was so ordered.                                                                 
                                                                                                                                
MS.  PIERRE  addressed  the committee's  concerns  from  the  last                                                              
hearing  of  the bill.  She  noted  the  sponsor worked  with  the                                                              
Division  of Elections  to find  new language  that would  satisfy                                                              
the director  regarding the  flexibility  of accepting bids  based                                                              
on criteria  other than low bid.  The work draft now  includes the                                                              
bid  for  the  preparation  of   ballots  under  the  Request  For                                                              
Proposal (RFP) process in the state procurement code.                                                                           
                                                                                                                                
9:57:12 AM                                                                                                                    
CHAIR  DYSON requested  to know  the  changes made  to version  A,                                                              
resulting in version N.                                                                                                         
                                                                                                                                
MS. PIERRE  explained that there is  a title change in  version N.                                                              
The  new  title  now  reads, "An  Act  making  contracts  for  the                                                              
preparation of election  ballots subject to the  provisions of the                                                              
state procurement  code."  She related that  language was  removed                                                              
from subsection (3)  of Section 1, which now  reads, "The director                                                              
shall  contract for  the  preparation of  ballots  under AS  36.30                                                              
(State Procurement Code)."                                                                                                      
                                                                                                                                
She described  another change  on page 4  - Section 2  was removed                                                              
and  replaced  with,  "AS  36.30.850(b)(7)  is  amended  to  read:                                                              
contracts for  the transportation  of ballots  under AS  15." This                                                              
includes the preparation of ballots under the procurement code.                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if  the bill  applies  to both  paper                                                              
ballots and electronic ballots.                                                                                                 
                                                                                                                                
MS. PIERRE deferred to Ms. Fenumai to answer.                                                                                   
                                                                                                                                
9:59:40 AM                                                                                                                    
GAIL  FENUMAI, Director,  Division  of  Elections,  Office of  the                                                              
Lieutenant  Governor, answered  questions  related to  SB 63.  She                                                              
said the bill would address printed paper ballots.                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI  requested information about  transparency in                                                              
the procurement process.                                                                                                        
                                                                                                                                
MS. FENUMAI deferred to Mr. Jones.                                                                                              
                                                                                                                                
10:00:29 AM                                                                                                                   
VERN  JONES,  Chief  Procurement   Officer,  Division  of  General                                                              
Services,   Department  of   Administration,  answered   questions                                                              
related  to  SB 63.  He  stressed  that  the procurement  code  is                                                              
completely  transparent, depending  on  the method  that is  used.                                                              
There  are four  formal  procurements. At  the  $50,000 and  above                                                              
level, the  ITB Process, which is  a low bid process,  is used and                                                              
it is  advertised on  the on-line  public notice  web site  for 21                                                              
days.  It  is the  same  process  for  an RFP,  plus  results  are                                                              
published.  Small procurements  for  under  $50,000 have  informal                                                              
quotes or  RFP's and  use the same  methods of advertising.  There                                                              
are also  exceptions built into  the procurement process,  such as                                                              
for   emergencies  and   limited  competition,   which  are   less                                                              
transparent.                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI  asked, if  there  was a  special  election,                                                              
would  the  procurement process  in  place  be  able to  meet  the                                                              
timelines.                                                                                                                      
                                                                                                                                
MR. JONES said the  code is flexible and could adapt  to a special                                                              
election timeframe and allow other types of procurements.                                                                       
                                                                                                                                
SENATOR  WIELECHOWSKI  envisioned  a  primary  election  situation                                                              
that  requires  a  fast  turnaround.  He  wondered  if  a  blanket                                                              
procurement would be used for the entire election season.                                                                       
                                                                                                                                
10:04:27 AM                                                                                                                   
MS.  FENUMAI  said the  division  would  procure ballots  for  the                                                              
entire calendar year.                                                                                                           
                                                                                                                                
SENATOR WIELECHOWSKI  noted that it  would not be known  who would                                                              
be on  the general  election ballot  until after  the primary  and                                                              
there would be tight deadlines.                                                                                                 
                                                                                                                                
MS. FENUMAI said  that was correct; however, the RFP  would go out                                                              
based on quantity.                                                                                                              
                                                                                                                                
SENATOR  WIELECHOWSKI  concluded   that  the  procurement  process                                                              
would not have to be repeated.                                                                                                  
                                                                                                                                
MS. FENUMAI  said yes; an RFP  would be issued based  on estimated                                                              
quantities for both the primary and the general election.                                                                       
                                                                                                                                
CHAIR DYSON  assumed the contract  would have provisions in  it if                                                              
there was a special election.                                                                                                   
                                                                                                                                
MS. FENUMAI agreed.                                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI asked if the division supports the bill.                                                                   
                                                                                                                                
10:05:46 AM                                                                                                                   
MS.  FENUMAI related  that the  exception for  ballot printing  in                                                              
the procurement  code has been in  place since 1986.  The division                                                              
has experienced no  problems with the current printer  since 2002.                                                              
She stated that if  it is the will of the legislature  to have the                                                              
ballots  printed by  a competitive  bidder,  the way  the bill  is                                                              
drafted now would be in the best interest of the division.                                                                      
                                                                                                                                
CHAIR  DYSON  stressed   the  importance  of  elections   and  the                                                              
necessity to find a reliable vendor.                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI  agreed. He inquired if the  procurement code                                                              
allows for quality.                                                                                                             
                                                                                                                                
10:07:04 AM                                                                                                                   
MR.  JONES  replied that  within  the  procurement code,  the  RFP                                                              
process   specifically  allows   for  the   evaluation  of   prior                                                              
experience,  qualifications,  and  quality  of  equipment,  rather                                                              
than just price.                                                                                                                
                                                                                                                                
SENATOR  COGHILL  commented  that  there  is a  limited  scope  in                                                              
Alaska  as to  who can  do the  work.  He noted  the division  has                                                              
contracted with the  same vendor for a while. He  wondered if past                                                              
performance could become part of the criteria.                                                                                  
                                                                                                                                
MS.  FENUMAI  posited  several  possible  questions  the  division                                                              
could ask  in order to determine  past performance  and experience                                                              
in printing ballots.                                                                                                            
                                                                                                                                
SENATOR  COGHILL  gave  an  example,   "Have  you  printed  for  a                                                              
municipality?"                                                                                                                  
                                                                                                                                
MS. FENUMAI  said it's obvious that  no other printer  has printed                                                              
ballots  on  a  statewide  basis  so that  would  not  be  a  fair                                                              
criteria to use in an RFP.                                                                                                      
                                                                                                                                
10:09:18 AM                                                                                                                   
SENATOR  GIESSEL moved  to report  CSSB  63, version  28-LS0459\N,                                                              
from committee  with individual recommendations and  a forthcoming                                                              
fiscal note. There  being no objection, CSSB 63(STA)  was reported                                                              
from the Senate State Affairs Standing Committee.