03/18/2014 09:00 AM Senate STATE AFFAIRS

           SB 174-LEASES FOR LEGISLATIVE OFFICE SPACE                                                                       
                                                                                                                                
10:02:27 AM                                                                                                                   
VICE-CHAIR  GIESSEL announced  the consideration  of SB  174. She                                                               
noted that SB 174 is sponsored by Senator Wielechowski.                                                                         
                                                                                                                                
10:02:41 AM                                                                                                                   
MONICA  SOUTHWORTH,  Staff,  Senator Wielechowski,  Alaska  State                                                               
Legislature, Juneau, Alaska,  explained that SB 174  will add two                                                               
sections that  establish how the legislature  will solicit public                                                               
comment  in  the event  it  seeks  a  lease with  total  payments                                                               
exceeding  $250,000  for  the   lease's  entire  term,  including                                                               
renewal options.                                                                                                                
                                                                                                                                
MS. SOUTHWORTH  explained the  sectional analysis  for SB  174 as                                                               
follows:                                                                                                                        
                                                                                                                                
     The first  section amends  section AS  24.20.060, which                                                                    
     is the  powers of the Legislative  Council, it includes                                                                    
     reference to  the two new  sections, Sections G  and H.                                                                    
     Section 2  adds the same  references to Sections  G and                                                                    
     H.  Section   3  adds  in   Sections  G  and   H  which                                                                    
     establishes how the legislature  will seek comment, and                                                                    
     that  is a  process. The  process is  14 days  before a                                                                    
     public  hearing,   there  will  be  a   notice  on  the                                                                    
     legislature's  website.  The  legislature will  hold  a                                                                    
     public  hearing  that  will  provide  the  public  with                                                                    
     information, including  details on the space  that will                                                                    
     be leased, terms  of the lease, and how  much the lease                                                                    
     will cost.  This will  allow members  of the  public to                                                                    
     voice   their   concerns,    ask   questions   of   the                                                                    
     legislature,  and give  the legislators  an opportunity                                                                    
     to respond to those questions  and concerns. There is a                                                                    
     requirement for teleconferencing  abilities included in                                                                    
     there to  allow access across  the state to all  of the                                                                    
     Legislative  Information   Office  (LIOs).   After  the                                                                    
     public hearing, it  allows a 30 day  comment period for                                                                    
     the  public  to  submit  comments. This  is  a  similar                                                                    
     process in  which regulation changes seek  comments for                                                                    
     regulation  changes.  Section  H is  a  definition  and                                                                    
     Section  4  adds  the  applicability  section  for  the                                                                    
     effective date.                                                                                                            
                                                                                                                                
VICE-CHAIR  GIESSEL asked  to confirm  that the  bill includes  a                                                               
zero fiscal note.                                                                                                               
                                                                                                                                
MS. SOUTHWORTH answered correct.                                                                                                
                                                                                                                                
10:05:24 AM                                                                                                                   
SENATOR COGHILL  said public comment  is a great thing.  He asked                                                               
if Section G was patterned after the regulation review process.                                                                 
                                                                                                                                
MS. SOUTHWORTH answered yes.                                                                                                    
                                                                                                                                
SENATOR  COGHILL  asked to  clarify  that  the bill  addresses  a                                                               
contracting against a regulatory issue.  He inquired if there are                                                               
any other contracts that are subject to the proposed review.                                                                    
                                                                                                                                
MS. SOUTHWORTH  answered no. She  noted that there  are executive                                                               
sessions in which contracts are  discussed. She explained that is                                                               
not  common  practice to  have  the  public comment  period  when                                                               
reviewing contracts. She asserted  that not having public comment                                                               
is an oversight regarding large  leases. She said there should be                                                               
public input and review to some extent for large leases.                                                                        
                                                                                                                                
SENATOR COGHILL offered that he  has been on the Judicial Council                                                               
and knows  the council can be  in executive session. He  asked to                                                               
verify that the bill will require public comment.                                                                               
                                                                                                                                
MS. SOUTHWORTH answered  that the bill only  addresses leases the                                                               
legislature enters into. She remarked  that SB 174 stems from the                                                               
recent  lease with  the Anchorage  Legislative LIO.  She asserted                                                               
that the sponsor's intent was not  to attack anyone on the issue,                                                               
but given the  number of calls to the  committee members' offices                                                               
about  the  Anchorage LIO  concern,  the  belief  was to  have  a                                                               
conversation regarding  large lease expenditures.  She reiterated                                                               
that the lease  expenditure floor is over $250,000  for a lease's                                                               
term.                                                                                                                           
                                                                                                                                
10:07:34 AM                                                                                                                   
SENATOR COGHILL replied  that he lives in the  Fairbanks area and                                                               
his office  has not received the  calls. He remarked that  he has                                                               
seen  the  news  accounts  regarding  the  Anchorage  LIO  lease-                                                               
purchase. He  said he was open  to the discussion and  having the                                                               
public  input was  probably an  important  part of  the bill.  He                                                               
asked how a  public comment process would occur  with a situation                                                               
similar to the Anchorage LIO lease.                                                                                             
                                                                                                                                
10:08:46 AM                                                                                                                   
CHAIR DYSON joined the committee meeting.                                                                                       
                                                                                                                                
MS. SOUTHWORTH answered  that a public hearing  would occur after                                                               
a   single-sourced  procurement   proposal  was   finalized.  She                                                               
explained  that a  14  day  notice would  be  provided where  the                                                               
Legislative Council  confers with the Legislative  Affairs Agency                                                               
for a  presentation that hears  public comment. She added  that a                                                               
30 day comment period would follow the public hearing.                                                                          
                                                                                                                                
VICE-CHAIR  GIESSEL asked  if  Ms. Southworth  was  aware of  the                                                               
discussion  that  had  taken place  in  Legislative  Council  the                                                               
previous  evening regarding  modifications to  the Anchorage  LIO                                                               
lease.                                                                                                                          
                                                                                                                                
MS. SOUTHWORTH answered yes.                                                                                                    
                                                                                                                                
VICE-CHAIR  GIESSEL  asked  if  lease  modifications  would  also                                                               
require a 30 day public hearing and comment period.                                                                             
                                                                                                                                
MS.  SOUTHWORTH replied  that the  bill only  applies to  single-                                                               
sourced  procurement leases.  She  noted that  the Anchorage  LIO                                                               
lease  was   now  going  through   the  Alaska   Housing  Finance                                                               
Corporation (AHFC)  for a possible  purchase and would  require a                                                               
bill to  proceed with  the eventual public  comment. She  said SB
 would not apply to the Anchorage LIO lease-purchase.                                                                        
                                                                                                                                
10:11:16 AM                                                                                                                   
SENATOR  COGHILL  asked if  the  Anchorage  LIO avoids  AHFC  and                                                               
reverts to a lease, would the proposed bill apply to the lease.                                                                 
                                                                                                                                
MS. SOUTHWORTH answered yes.                                                                                                    
                                                                                                                                
SENATOR COGHILL remarked that he did not have that big of a                                                                     
problem with the bill.                                                                                                          
                                                                                                                                
CHAIR DYSON asked if anyone would like to testify.                                                                              
                                                                                                                                
10:11:58 AM                                                                                                                   
CHAIR DYSON announced that the committee will stand at ease.                                                                    
                                                                                                                                
10:12:31 AM                                                                                                                   
CHAIR DYSON called the committee back to order and asked if                                                                     
there are any other items of business to come before the                                                                        
committee. [SB 174 was heard and held in committee.]