Legislature(2009 - 2010)FAHRENKAMP 203
04/16/2010 08:45 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB225 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 225 | TELECONFERENCED | |
| + | 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
date."
- 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.
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