HOUSE BILL NO. 406 An Act relating to a requirement for competitive bidding on contracts for the preparation of election ballots. REPRESENTATIVE ANNA FAIRCLOUGH, SPONSOR, presented CSHB 406(STA), an act relating to contracting for the preparation of election ballots. The bill allows a competitive bid proposal to be submitted to the Division of Elections. The Division can set parameters for quality, site inspection, testing, a period for the award, and accountability of delivering ballots. Representative Fairclough noted that the only non-resolved issue is the "Alaska product" preference on page 4, line 28. She explained that any printer in the state of Alaska can become contracted as a preferential provider. The purpose is to promote Alaska hire. Representative Crawford asked what the genesis of the bill was. Representative Fairclough explained that she was asked why Elections was exempt from the procurement process. She decided to work to create an open and competitive process for Alaskans. 3:41:48 PM Representative Thomas asked about penalties. Representative Fairclough replied that all printers would be held accountable to be timely and accurate in all they were contracted for. Representative Gara asked if there could be a situation where a dissatisfied bidder could slow down the process for getting out a ballot. Representative Fairclough replied that the time and quality assurance would be inside the proposal process. VERN JONES, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF ADMINISTRATION, explained that there would be a protest process included. The bill is silent on protest but procurement code procedures would be followed. There would be term contracts for a number of years to allow sufficient time for appeals and other eventualities. 3:44:55 PM Representative Kelly asked about the Alaska product provision. Mr. Jones responded that the bill does not subject the printing of ballots to the procurement code, where the Alaska better preference, product preference, and other preferences reside. The bill brings in a preference identical to the procurement code. The concern with the "Alaska Product" preference is a timing issue. Currently there is only one printer on the list. Many other printers could get on the list eventually, but a company must be on the list 30 days prior to the issuance of the request for proposals to qualify. It then takes approximately 30 days for the Department of Commerce to process an application to be placed on the list, but the list is only published twice each year. This could present a problem. He suggested increasing the Alaska bidder preference by whatever percentage, and eliminate the product preference. 3:47:35 PM Representative Fairclough explained that the bill would become effective in January of 2009. All printers are put on notice. She personally contacted the current vendor that currently holds the contract. She noted that the current provider has done a great job for the State; the bill is in no way a reflection of any performance concern. She went on to say that if there is wording for Alaska preference it could cause problems as this is not consistent with procurement law. 3:49:16 PM Co-Chair Meyer opened public testimony. WAYNE STEVENS, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE, spoke in support of the changes to provide for the competitive bidding process and the "Made in Alaska" preference. CHAZ SIMMONS, SALES MANAGER, SERVICE BUSINESS PRINTING, ANCHORAGE (Testified via teleconference), testified in support of the bill. He agrees with the principals of competitive bidding. He thought many Alaskan companies would be able to perform on the product. 3:51:06 PM KERRY NOBLIN, PENISULA PRINTING, KENAI (Testified via teleconference), spoke in support HB 406. He underlined the fact that currently there is only one printing company contracted by the Division of Elections. 3:53:12 PM PUBLIC TESTIMONY CLOSED. Representative Fairclough clarified that preparing ballots is not a simple process, but requires exactness and high quality. She stressed the importance of the Division of Elections being allowed the utmost scrutiny on any bidder. Co-Chair Chenault MOVED to REPORT HB 406 out of Committee with individual recommendations and attached zero fiscal note #1 by the Office of the Governor. CS HB 406 (STA) was REPORTED out of Committee with a "do pass" recommendation and with attached zero fiscal note #1 by the Office of the Governor.