HB 262-PROCUREMENT EXEMPTION: PDA, OPA  9:09:55 AM CHAIR DYSON announced the consideration of HB 262. 9:10:15 AM REPRESENTATIVE LINDSEY HOLMES, Alaska State Legislature, Juneau, Alaska, HB 262 sponsor, said HB 262 was drafted in response to an audit by the Alaska Division of Legislative Audit (ADLA) in 2012. She explained that ADLA audited the Department of Administration (ADA) and the Office of Public Advocacy (OPA). She said OPA was found not to be in total compliance with the Alaska Procurement Code (APC). She set forth that HB 262 is an attempt to make sure OPA is in compliance with APC. REPRESENTATIVE HOLMES detailed that OPA and the Public Defender Agency (PDA) are entities housed within ADA. She said OPA and PDA are in charge of defending indigent and poor Alaskans in criminal cases. She noted that OPA and PDA are almost always opposing counsel to the Alaska Department of Law's (ADOL) prosecutors. CHAIR DYSON asked what the difference is between OPA and PDA. REPRESENTATIVE HOLMES explained that PDA acts principally as the primary group and OPA takes on criminal cases where the public defenders have conflicts. She added that OPA also serves in the capacity of guardian ad litem. 9:11:56 AM CHAIR DYSON asked what the situations are where PDA has real or perceived conflicts of interest. REPRESENTATIVE HOLMES replied that the legal codes dictate conflict of interest situations. She explained that a level playing field does not exist in the APC for the PDA and OPA versus ADOL. She said an inadvertent omission was made when the APC was written where state attorneys were not taken into consideration outside of ADOL. She specified that state attorneys exist in the ADA and noted that her oversight as Chair for ADA's budget sub-committee precipitated her involvement with HB 262. She cited an example were outside counsel, conflict counsel, or expert witnesses are hired where prosecutors are given APC spending exemptions to retain qualified experts that the attorney general signs-off on. She said PDA and OPA are not afforded the same APC budgetary spending exemptions as ADOL. She summarized that HB 262 creates a level playing field by providing the same ADOL exemptions to PDA and OPA. She added that PDA and OPA directors will be allowed to sign-off on exemptions rather than requiring the attorney general's authorization. She pointed out that the attorney general is technically the opposing counsel's boss. 9:14:18 AM SENATOR COGHILL asked how long the inequity has been present based upon the auditors' findings. REPRESENTATIVE HOLMES replied that the audit discovered that the PDA and OPA did not actually realize that the inequity was covered by APC. She said the noncompliance has been going on for a while. CHAIR DYSON remarked that PDA and OPA were fortunate not to be busted for their actions. REPRESENTATIVE HOLMES answered that the auditors slapped PDA and OPA "on the wrists" for their noncompliance. CHAIR DYSON called attention to the value of good auditors. REPRESENTATIVE HOLMES agreed that audits were an important function. SENATOR COGHILL asked if the current statute on contracts up to $100,000 were limited to $1,000 exemptions on both sides. 9:16:16 AM MIKE BARNHILL, Deputy Commissioner, Alaska Department of Administration, Juneau, Alaska, answered that Senator Coghill's inquiry pertains to section 2 of HB 262 which amends APC's limited competition, AS 36.33.05. He detailed that the $100,000 limitation only applies to construction contracts. He specified that the use of the limited competition statute for professional services has no limitation. SENATOR COGHILL asked Mr. Barnhill to address the question previously posed when a perceived conflict occurs between PDA and OPA. MR. BARNHILL replied that when the public defender has represented a witness who then turns out to be a defendant or vice versa, conflicts arise due to the knowledge that a public defender has with respect to the witness or the defendant's prior history. 9:17:47 AM RICK ALLEN, Director, Office of Public Advocacy (OPA), Alaska Department of Administration, Anchorage, Alaska, added that conflict also arises when there are co-defendants where each individual requires independent and conflict free counsel. He noted that OPA's cases are about 50 percent criminal and 50 percent civil. He explained that OPA's conflict cases from PDA tend to be big cases where added witnesses are involved. He said civil cases encompass guardian ad litem for abused and neglected kids, public guardianship for disabled adults who are wards of the states, elder-fraud, and an appellate unit. He set forth that HB 262 would assist OPA in retaining professionals needed to appropriately represent its clients. CHAIR DYSON asked if other individuals would like to address HB 262. 9:19:45 AM SENATOR GIESSEL moved to report HB 262, labeled 28-LS1222\A, from committee with individual recommendations and attached zero fiscal note. 9:20:09 AM CHAIR DYSON announced that without objection, HB 262 passes out of the Senate State Affairs Standing Committee.