HOUSE BILL 18                                                                
                                                                               
       "An   Act   extending  to   certain   partnerships  and                 
       corporations  the  10  percent  procurement  preference                 
       currently given to certain sole proprietorships who are                 
       Alaska bidders and owned by persons with disabilities."                 
                                                                               
  REPRESENTATIVE JEANNETTE JAMES pointed out  that HB 18 would                 
  allow 100%  disabled owned corporations  and partnerships to                 
  be eligible  for disabled  bidder preferences.   She  stated                 
  that  current law allows disabled owned sole proprietorships                 
  to take advantage  of certain  disabled bidder  preferences.                 
  Equal protection under the law  requires all like situations                 
  to  be  treated fairly  and  equally.   Representative James                 
  continued, current law discriminates  against disabled owned                 
  corporations     and     partnerships,     allowing     sole                 
  proprietorships.                                                             
                                                                               
  Representative James explained how the  past legislation was                 
  vetoed  in  error.    Gary  Hayden, Alaska  Marine  Highway,                 
  Department of Transportation and  Public Facilities (DOT&PF)                 
  had added  an amendment to  the legislation which  created a                 
  conflict  between  the  two  agencies,  thus,  causing   the                 
  Governor to veto the legislation.   Representative J. Davies                 
  clarified  that  the  bill had  not  been  vetoed  in error,                 
  instead, it had been amended in error.                                       
                                                                               
  DUGAN  PETTY,   DIRECTOR,  DIVISION  OF   GENERAL  SERVICES,                 
  DEPARTMENT OF ADMINISTRATION,  testified that the Department                 
  of Administration  supports the proposed  legislation.   The                 
  bill would correct an inequity which was established in law,                 
  allowing only the  sole proprietorship to take  advantage of                 
  the preference for  the disabled  community.  A  partnership                 
  would not  be able  to take  advantage of  that nor  would a                 
  corporation.                                                                 
                                                                               
                                                                               
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  Mr.   Petty   addressed   Representative  Martin's   concern                 
  regarding the application  of the  legislation.  He  advised                 
  that last year the Legislature had passed  an extensive bill                 
  on procurement.  One of the provisions of the bill currently                 
  is law,  which outlines  the procedure  to  qualify for  the                 
  preference.  That  was a  loop hole and  the Department  has                 
  endeavored to close the gap.                                                 
                                                                               
  DUANE  FRENCH,  (TESTIFIED VIA  TELECONFERENCE), WASHINGTON,                 
  D.C., spoke in support of HB 18.  He reiterated that passage                 
  of the legislation would allow for partnerships,  completely                 
  owned by people  with disabilities  the opportunity to  take                 
  advantage of the bidder's preference.                                        
                                                                               
  Representative  J.   Davies  asked  how   many  corporations                 
  currently in existence  would fall  under the  terms of  the                 
  bill.   Mr. French did not  know, although, he felt  that it                 
  would provide an  opportunity for  people in that  category.                 
  He predicted that there would not be a rush of applications.                 
                                                                               
                                                                               
  Representative Martin MOVED to report HB 18 out of Committee                 
  with individual  recommendations and  with the  accompanying                 
  fiscal notes.  There being NO  OBJECTION, it was so ordered.                 
                                                                               
                                                                               
  HB  18  was  reported out  of  Committee  with  a "do  pass"                 
  recommendation  and with a fiscal  note by the Department of                 
  Administration dated 1/29/97  and a zero fiscal  note by the                 
  Department of Education.