02/26/1998 08:40 AM Senate FIN

                                                                               
 SENATE BILL NO. 285                                                           
"An Act relating to state procurement practices."                              
                                                                               
Co-chair Pearce referred to the fiscal note from the Alaska                    
Railroad now in the files.  She said the bill had been held                    
pending a question on what the cost would be from the                          
Railroad.  She noted that it had not been changed.                             
                                                                               
Senator Phillips said he was philosophically opposed to the                    
bill.  He had a concern about the Railroad union labor                         
agreement.  Co-chair Sharp advised that Mr. Jim Blasingame                     
was available to testify via teleconference from Anchorage.                    
Senator Phillips asked that Mr. Blasingame explain the union                   
labor agreement they have and how this bill would affect the                   
agreement.                                                                     
                                                                               
James B. Blasingame, Vice President, Corporate Affairs,                        
Alaska Railroad Corporation testified before the committee                     
via teleconference from Anchorage.  In response to a                           
question from Senator Phillips he said the subcontracting                      
provision they have in their labor agreement allows                            
employees to subcontract work of less that ten calendars                       
day.  If the work being contracted requires ten calendar                       
days or more to complete, (1) the subcontracting will only                     
be done when managerial skills are not available on the                        
property; or (2) skilled personnel are not available on the                    
property from active or laid off employees; or (3) if                          
adequate and required equipment is not available on the                        
property; and (4) the required time of completion cannot be                    
met with the existing skilled personnel or equipment                           
available on the property; or (5) such work cannot be                          
performed by the railroad at a reasonable competitive cost.                    
Their definition of "reasonable competitive cost" is not                       
more than five percent in total cost of the proposed                           
contract.                                                                      
                                                                               
Senator Phillips asked who would be trusted more in making                     
the improvements when there is a railroad crossing on a                        
particular project.  He said he felt he would have to side                     
with the railroad employees who know their business rather                     
than the general contractors.                                                  
                                                                               
Co-chair Pearce advised if there were no more questions the                    
committee would take a brief at ease to gather a quorum.                       
                                                                               
(10:35 a.m. at ease)                                                           
                                                                               
Following a brief at ease, Co-chair Pearce called the                          
committee back to order.                                                       
                                                                               
Senator Adams MOVED SB 285 and WITHOUT OBJECTION it was                        
REPORTED OUT with appropriate fiscal notes and individual                      
recommendations.                                                               
                                                                               
Co-chair Pearce passed the gavel back to Co-chair Sharp.