02/10/2000 01:40 PM Senate L&C

        SB 220-PROCUREMENT PREFS:PARTNERSHP/LTD LIAB CO                                                                         
                                                                                                                                
CHAIRMAN MACKIE announced SB 220 to be up for consideration.                                                                    
                                                                                                                                
MR. VERN JONES, Chief Procurement Officer, Department of                                                                        
Administration, said that SB 220 clarifies the Alaska Bidder and                                                                
Disability Preferences Sections of the State Procurement Code                                                                   
regarding limited liability partnerships and limited liability                                                                  
corporations.  It was written in 1987 and well before the inception                                                             
of LLPs and LLCs.  So the preferences section in their Procurement                                                              
Code does not recognize these business entities.  This bill inserts                                                             
language that specifically mentions these types of businesses in                                                                
the preference section of the Code as well as stipulating the                                                                   
qualifying factors required to receive those preferences.  They                                                                 
believe the clarification is necessary and furthers the legislative                                                             
objectives of the Procurement Code by insuring that bona fide                                                                   
Alaskan businesses receive the preference.                                                                                      
                                                                                                                                
SENATOR DONLEY asked what Representative Grusendorf thought about                                                               
the bill as he was the author of the existing Procurement                                                                       
Preference.                                                                                                                     
                                                                                                                                
SENATOR KELLY said he thought it looked like they were going along                                                              
with the intent of the disability bill sponsored by Representative                                                              
Grussendorf, and just adding an LLP with disability partners.                                                                   
                                                                                                                                
MR. JONES said that was correct.  This bill does two things.  It                                                                
allows LLCs and LLPs to qualify for the Alaska bidder preference                                                                
by stipulating the same kinds of qualifications other businesses                                                                
have to posses to qualify.  It also allows those types of                                                                       
businesses to qualify for the disability preferences if all the                                                                 
managing directors are also disabled.                                                                                           
                                                                                                                                
SENATOR KELLY added that now we allow for every other type of                                                                   
business entity.  The LLPs and LLC is a new type of entity. So they                                                             
are just being inserted into that law.                                                                                          
                                                                                                                                
MR. JONES said that is right.                                                                                                   
                                                                                                                                
SENATOR LEMAN mentioned that yesterday there was a comparable bill                                                              
on the House floor providing for architects, engineers, and land                                                                
surveyors.  It passed on the floor 38 - 0.  So if Representative                                                                
Grussendorf was on the floor, he voted for it.  It's generally                                                                  
considered to be a technical fix.                                                                                               
                                                                                                                                
SENATOR DONLEY said he thought any time the Administration proposes                                                             
to amend a law that was sponsored by an acting member, it's just                                                                
courtesy to get the opinion of that member.  He asked them to do                                                                
that.                                                                                                                           
                                                                                                                                
SENATOR MACKIE noted if he did that before the bill reached Senate                                                              
Finance, he could answer Senator Donley's question when he asks it.                                                             
                                                                                                                                
SENATOR LEMAN moved to report CSSB 220 (L&C) from committee with                                                                
individual recommendations.  There were no objections and it was so                                                             
ordered.