HB 228:  STATE PROCUREMENTS                                                  
                                                                               
  Number 235                                                                   
                                                                               
  CHAIRMAN VEZEY read the title to HB 228 and announced a                      
  Committee Substitute had been drawn up.  He noted there were                 
  two changes involved in CSHB 228 (STA).  Those changes                       
  include the elimination of the administrative evaluation of                  
  costs in Section five on page four, in addition to the                       
  raising of the instate business preference from five to                      
  seven percent;  and the deletion of the section dealing with                 
  the hiring of instate employees.  He stated it would be hard                 
  to enforce, if not unconstitutional.                                         
                                                                               
  Number 288                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS MOVED ADOPTION of CSHB 228 (STA).                    
  Without objections, CSHB 228 (STA) was adopted 6-0.                          
                                                                               
  Number 310                                                                   
                                                                               
  REPRESENTATIVE B. DAVIS noted the House Economic Task Force                  
  had an interest in HB 228, and asked if the Task Force had                   
  seen the CS.                                                                 
                                                                               
  CHAIRMAN VEZEY stated it had not, and said he would probably                 
  hold CSHB 228 (STA) until the Task Force made any comments                   
  on it.                                                                       
                                                                               
  Number 315                                                                   
                                                                               
  CHAIRMAN VEZEY then noted the presence of the Ombudsman, and                 
  called him to the table for testimony.                                       
                                                                               
  Number 347                                                                   
                                                                               
  CHAIRMAN VEZEY asked about the procurement procedures set up                 
  in Section two of CSHB 228 (STA), and asked why a clause in                  
  Section two eliminated the competitive bid procedure for                     
  certain investigations by the Ombudsman.                                     
                                                                               
  Number 356                                                                   
                                                                               
  DUNCAN FOWLER, ALASKA STATE OMBUDSMAN, stated his office had                 
  been overlooked in the original procurement codes adopted by                 
  a previous legislature, and had already adopted policies to                  
  cover that oversight.  However, he stated, CSHB 228 (STA)'s                  
  provisions were needed in statute because the Legislative                    
  Council approved funding for the Ombudsman, which                            
  effectively put the choice of investigators into a political                 
  arena, which could be in conflict.  He stated the new                        
  legislation is a formalization of policy the Legislative                     
  Council adopted last year.                                                   
                                                                               
  Number 388                                                                   
                                                                               
  CHAIRMAN VEZEY asked why investigators' contracts should be                  
  exempt.                                                                      
                                                                               
  Number 396                                                                   
                                                                               
  MR. FOWLER reiterated the political connection between the                   
  Ombudsman's office and the Legislature, and stated that he                   
  might need to conduct an investigation on a certain arm of                   
  government.  The elimination of the competitive bid                          
  provisions would allow him to hire people with specialized                   
  knowledge as needed and discharge them equally as quickly.                   
                                                                               
  Number 420                                                                   
                                                                               
  CHAIRMAN VEZEY asked about the wording in CSHB 228 (STA)                     
  which dealt with the purchase of office supplies, leasing of                 
  office space and contracting for personal services.                          
                                                                               
  Number 430                                                                   
                                                                               
  MR. FOWLER stated the language was designed to broaden the                   
  scope of procured items that the original codes did not                      
  cover.  He stated many items his office must either buy or                   
  have the state buy were not covered when the 1986 revision                   
  of the codes was done, and that he was pleased to see them                   
  included in CSHB 228 (STA).  He also stated he was pleased                   
  to see the language included that directed state printing                    
  jobs to the private sector as opposed to the state print                     
  shops first.                                                                 
                                                                               
  Number 481                                                                   
                                                                               
  CHAIRMAN VEZEY stated he would hold CSHB 228 (STA) in                        
  committee pending comments from the Speaker's Economic Task                  
  Force.  He then read the title to HB 256 and called for a                    
  sponsor statement.