SENATE BILL NO. 209                                                            
                                                                               
"An Act relating to the Task Force on Privatization;                           
and providing for an effective date."                                          
                                                                               
CRAIG JOHNSON, STAFF, SENATOR JERRY WARD, explained that                       
privatization should be the fundamental political and                          
economic reassessment within the role of government and the                    
private sector for the State of Alaska.  He suggested that                     
markets are efficient only when they are competitive;                          
however, efficiency should not be the government's only                        
goal.  Government must balance the pursuit of efficiency                       
with effectiveness while maintaining the confidence of the                     
people it represents.                                                          
                                                                               
Mr. Johnson pointed out that SB 209 was introduced to                          
establish a task force that will review functions of state                     
government that could easily be transferred to the private                     
sector.  The task force will have members from the public,                     
legislative and executive branches of government.  He                          
summarized that SB 209 will address the State's contracting                    
procedures to make sure Alaskans are getting the most out                      
of every contracting dollar spent.  He pointed out that SB                     
209 is identical to previous proposed legislation SB 68,                       
with slightly different fiscal notes.  The House and Senate                    
leadership has determined that the fiscal note should                          
include per diem for legislators.                                              
                                                                               
Representative Kohring questioned the necessity of the                         
proposed legislation; he recommended hiring a consulting                       
agency.  Co-Chair Therriault replied that the costs for an                     
outside consultant would be higher, in addition, Senator                       
Ward wants there to be cooperative effort between policy                       
makers for the State and the Legislature.                                      
                                                                               
PAMELA LABOLLE, PRESIDENT, ALASKA STATE CHAMBER OF                             
COMMERCE, JUNEAU, spoke in support of SB 209.  The                             
legislation sets forth that some government functions can                      
be done more efficiently and less expensively within the                       
private sector.                                                                
                                                                               
LORRAINE DERR, EXECUTIVE DIRECTOR, ALASKA STATE HOSPITAL &                     
NURSING HOME ASSOCIATION (ASHNHA), voiced support of the                       
proposed legislation because of our dwindling State and                        
federal dollar allocations.  ASHNHA would be willing to                        
work with the task force in addressing the ways other                          
states are working with the privatization of health care.                      
                                                                               
DON ETHERIDGE, LABOR UNION, JUNEAU, noted support of SB 209                    
although, voiced concern with the proposed time frame.  He                     
thought that there would not be enough interest in such a                      
short time span especially, given that this is an election                     
year.  He urged a longer time frame be allocated for the                       
study.                                                                         
                                                                               
Representative Martin asked if moving the date to January                      
15th would be better.  Mr. Etheridge stated any change                         
would help, although, he would propose a one year                              
extension.                                                                     
                                                                               
Representative Martin MOVED to report SB 209 out of                            
Committee with individual recommendations and the                              
accompanying fiscal notes.  There being NO OBJECTION, it                       
was so ordered.                                                                
                                                                               
SB 209 was reported out of Committee with a "do pass"                          
recommendation and with fiscal notes by the Office of the                      
Governor dated 1/21/98 and the Legislative Affairs Agency                      
dated 1/21/98.                                                                 
                                                                               
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 4:00 P.M.                                             
                                                                               
H.F.C. 14 2/17/98