Legislature(2009 - 2010)FAHRENKAMP 203

04/16/2010 08:45 AM Senate STATE AFFAIRS

Download Mp3. <- Right click and save file as

Audio Topic
08:57:00 AM Start
08:57:30 AM HB225
09:05:07 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
Tentative Schedule:
+= HB 225 Heard & Held TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 16, 2010                                                                                         
                           8:57 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Linda Menard, Chair                                                                                                     
Senator Kevin Meyer, Vice Chair                                                                                                 
Senator Hollis French                                                                                                           
Senator Joe Paskvan                                                                                                             
MEMBERS ABSENT                                                                                                                
Senator Albert Kookesh                                                                                                          
COMMITTEE CALENDAR                                                                                                            
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 225(FIN)(CORRECTED)                                                                     
"An Act relating  to the State Procurement Code;  relating to the                                                               
procurement   of  supplies,   services,  professional   services,                                                               
construction   services,   state    fisheries   products,   state                                                               
agricultural products,  state timber, and state  lumber; relating                                                               
to  procurement  preferences;  relating  to  procurement  by  the                                                               
office of  the ombudsman, the  Alaska Industrial  Development and                                                               
Export Authority,  the Alaska Energy  Authority, and  other state                                                               
agencies and public corporations;  and providing for an effective                                                               
     - HEARD AND HELD                                                                                                           
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB 225                                                                                                                  
SHORT TITLE: STATE PROCUREMENT CODE                                                                                             
SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH                                                                                        
04/10/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/09       (H)       STA, FIN                                                                                               
04/14/09       (H)       STA RPT CS(STA) 4DP                                                                                    
04/14/09       (H)       DP: GRUENBERG, WILSON, PETERSEN, SEATON                                                                
04/14/09       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/14/09       (H)       Moved CSHB 225(STA) Out of Committee                                                                   
04/14/09       (H)       MINUTE(STA)                                                                                            
04/16/09       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/16/09       (H)       <Bill Held Over to 1:30 Meeting>                                                                       
04/16/09       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/16/09       (H)       Scheduled But Not Heard                                                                                
02/08/10       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/08/10       (H)       Heard & Held                                                                                           
02/08/10       (H)       MINUTE(FIN)                                                                                            
03/11/10       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/11/10       (H)       Heard & Held                                                                                           
03/11/10       (H)       MINUTE(FIN)                                                                                            
03/17/10       (H)       FIN RPT CS(STA) 9DP                                                                                    
03/17/10       (H)       DP: THOMAS, GARA, DOOGAN, JOULE, KELLY,                                                                
                         AUSTERMAN, N.FOSTER, FAIRCLOUGH,                                                                       
03/17/10       (H)       STOLTZE                                                                                                
03/17/10       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
03/17/10       (H)       Moved CSHB 225(STA) Out of Committee                                                                   
03/17/10       (H)       MINUTE(FIN)                                                                                            
03/19/10       (H)       CORRECTED FIN RPT CS(FIN) 8DP 1NR                                                                      
03/19/10       (H)       DP: JOULE, AUSTERMAN, DOOGAN, N.FOSTER,                                                                
                         THOMAS, FAIRCLOUGH, KELLY, STOLTZE                                                                     
03/19/10       (H)       NR: GARA                                                                                               
03/22/10       (H)       CS(FIN)(CORRECTED) RECEIVED                                                                            
03/22/10       (H)       TRANSMITTED TO (S)                                                                                     
03/22/10       (H)       VERSION: CSHB 225(FIN)(CORRECTED)                                                                      
03/23/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/10       (S)       STA, FIN                                                                                               
04/01/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/01/10       (S)       -- MEETING CANCELED --                                                                                 
04/06/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/06/10       (S)       Heard & Held                                                                                           
04/06/10       (S)       MINUTE(STA)                                                                                            
04/08/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/08/10       (S)       Heard & Held                                                                                           
04/08/10       (S)       MINUTE(STA)                                                                                            
04/14/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/14/10       (S)       Scheduled But Not Heard                                                                                
04/16/10       (S)       STA AT 8:45 AM FAHRENKAMP 203                                                                          
WITNESS REGISTER                                                                                                              
REPRESENTATIVE ANNA FAIRCLOUGH                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HB 225.                                                                                        
ACTION NARRATIVE                                                                                                              
8:57:00 AM                                                                                                                    
CHAIR  LINDA  MENARD called  the  Senate  State Affairs  Standing                                                             
Committee meeting  to order at 8:57  a.m. Present at the  call to                                                               
order were Senators Paskvan, Meyer and Menard.                                                                                  
                 HB 225-STATE PROCUREMENT CODE                                                                              
8:57:30 AM                                                                                                                    
CHAIR MENARD  announced the only order  of business to be  CS for                                                               
HB 225. [CSHB 225(FIN)(CORRECTED) was before the committee.]                                                                    
SENATOR FRENCH joined the meeting.                                                                                              
8:58:01 AM                                                                                                                    
SENATOR  MEYER  moved  to adopt  the  proposed  Senate  committee                                                               
substitute  (CS)  for CSHB  225,  [labeled  26-LS0791\W], as  the                                                               
working  document  for purposes  of  discussion.  There being  no                                                               
objection, version W was before the committee.                                                                                  
REPRESENTATIVE FAIRCLOUGH, Sponsor  of HB 225, said  version W is                                                               
a  substantially reduced  version  which could  still assist  the                                                               
procurement  department. Version  W  would  still streamline  the                                                               
process  and  open up  competition  for  leasing space  in  rural                                                               
Alaska. Version W  increases the allowable square  footage for an                                                               
informal  leasing process  from 3,000  to 7,000  square feet.  It                                                               
increases informal supplies procurement  from $50,000 to $100,000                                                               
and  aggregate  construction  from $100,000  to  $200,000.  These                                                               
changes  to  the  procurement code  will  help  alleviate  costs,                                                               
streamline   staff   duties   and   increase   competition.   The                                                               
procurement  code  has  not been  changed  since  the  mid-1990s.                                                               
Procurement department  staff has  remained the same  while their                                                               
leasing structure  has increased  substantially over  time. About                                                               
half  of  the department's  work  is  done on  lease  procurement                                                               
alone. Currently the state has 160  leases that are 7,000 feet or                                                               
less and 116  of those are outside urban areas.  The formal lease                                                               
process can  be very  cumbersome to  small communities  who often                                                               
don't respond to a lease request because it is too complicated.                                                                 
9:00:10 AM                                                                                                                    
SENATOR  FRENCH  asked  for   confirmation  that  policy  changes                                                               
discussed with previous versions of HB 225 are set aside.                                                                       
REPRESENTATIVE FAIRCLOUGH replied that is correct.                                                                              
SENATOR  FRENCH   asked  for   confirmation  that   the  offerors                                                               
preference remains in regulation.                                                                                               
REPRESENTATIVE FAIRCLOUGH replied that is correct.                                                                              
SENATOR FRENCH asked  if AIDEA and AEA stay where  they are right                                                               
now as far as their procurement rules.                                                                                          
REPRESENTATIVE  FAIRCLOUGH replied  that  she  believes the  bill                                                               
brought before the committee benefitted  the state of Alaska. She                                                               
understood complex issues  that were not brought  to her directly                                                               
were brought  to the committee;  she did  not have time  to fully                                                               
consider  these issues.  She confirmed  that  Senator French  was                                                               
correct. Her concern,  after reviewing the audit  report, is that                                                               
AIDEA and AEA will  continue to act in the same  way which is the                                                               
offensive behavior brought before the  committee. She is happy to                                                               
go  forward  with  version  W  today,  as  it  will  benefit  the                                                               
department  greatly. However  those who  brought concerns  to the                                                               
committee will not find it to be a resolution.                                                                                  
SENATOR  MEYER noted  that several  people  testified before  the                                                               
committee  and many  concerns  have been  called  in since.  Some                                                               
points  that were  brought up  do need  to be  addressed and  the                                                               
whole procurement  system needs  to be examined,  streamlined and                                                               
centralized. There  is the potential  to save the  state millions                                                               
of dollars.                                                                                                                     
9:03:12 AM                                                                                                                    
He believes  the committee  has come to  the conclusion  that the                                                               
problem  is much  bigger than  the  bill before  them. He  thinks                                                               
Representative  Fairclough  is  now  trying to  simply  give  the                                                               
procurement officer  more authority to  fix some problems  and he                                                               
has no  problem with that.  He is  concerned that the  title, "An                                                               
Act  relating to  the State  Procurement Code"  is so  broad that                                                               
once it  leaves committee, all  sorts of mischief can  happen. If                                                               
and when the time comes, he would like to amend that.                                                                           
SENATOR  PASKVAN said  he  understands that  version  W tries  to                                                               
address the  most immediate problems,  to help with  rural Alaska                                                               
leases and to  update inflation proofing on  purchasing. He asked                                                               
if Vern Jones, chief procurement officer, is favor of version W.                                                                
REPRESENTATIVE FAIRCLOUGH said she believes he is.                                                                              
CHAIR MENARD  said she will  not hear public testimony  and noted                                                               
that  the  Senate  committee substitute,  26-LS0791\W,  had  been                                                               
adopted as the working document.                                                                                                
9:05:07 AM                                                                                                                    
CHAIR MENARD recessed the meeting to the call of the chair at                                                                   
9:05 a.m.                                                                                                                       

Document Name Date/Time Subjects