CSSB 212(L&C): An Act relating to the giving of procurement notices; changing the content of the required procurement reports to the legislature by the commissioner of administration; relating to publications produced by state agencies; establishing an innovative construction procurement methods pilot program; and establishing legislative findings, a legislative purpose, and legislative intent for state procurement; and providing for an effective date. Josh Fink, aide to Senator Kelly and the Labor & Commerce Committee, sponsor of SB 212, testified in support of the bill. Amendment 1 by Co-chair Pearce was ADOPTED with no objections. CSSB 212(FIN) was REPORTED OUT of committee with a "do pass," a zero fiscal notes for the Department of Administration, a fiscal note for the Department of Administration-Statewide for $256.1, and a fiscal note for the Department of Transportation & Public Facilities in the amount of $5.0. CS FOR SENATE BILL NO. 212(L&C): An Act relating to the giving of procurement notices; changing the content of the required procurement reports to the legislature by the commissioner of administration; relating to publications produced by state agencies; establishing an innovative construction procurement methods pilot program; and establishing legislative findings, a legislative purpose, and legislative intent for state procurement; and providing for an effective date. CO-CHAIR PEARCE announced that CSSB 212(L&C) was before the committee. She invited Josh Fink, aide to Senator Kelly and the Labor & Commerce Committee, sponsor of SB 212, to come before the committee. JOSH FINK said that SB 212, termed the "buy Alaskan" legislation, had several components. The idea behind the bill was that the state is one of the largest purchasers of goods and services in the state purchasing everything from road design and construction services to copy machines and paper and pencils. This bill aimed to strengthen Alaska's economy by increasing the share of State government contracts going to Alaskan businesses. This bill would establish an Innovative Construction Procurement Methods pilot program within Dept. of Transportation & Public Facilities (DOT&PF) for a period of two years to implement an Alaska Bonus Program to replace the current preferences. He went on to say that current incentives include the Alaskan Bidders Preference, Alaska Subcontracting, Disadvantage Business Enterprises/Equal Employment Opportunity programs, Alaska Products Preference, and the Alaska Hire Program. The latter two were largely unworkable, under-utilized, or not utilized at all. Allowing DOT/PF to test, on a trial basis, a bonus system which provided bonuses at project completion and encouraged the same policy goals would be more economically beneficial for vendors, reduce administrative costs and bid protests, and could likely be used in joint federal/state projects where state preferences were currently not allowed. The commissioner would establish this program through regulation and report to the legislature on the program's progress 15 to 27 months after implementation. If successful, the legislature could expand and extend the program indefinitely, replacing current preferences. Lastly, this bill incorporates a number of provisions from the "Make-It-Alaskan" legislation from the 17th Legislature, HB 245, which would also increase the amount of state work going to Alaskans. This bill would: 1) encourage procurement officers to restrict notice of contract solicitation to Alaskan suppliers and providers of services desiring to compete for state contract work (this practice is already standard in DOT/PF); 2) require the commissioner to include in his report to the legislature on state procurements, the number of bidders located in-state and out-of-state that bid or made proposals on procurements; and, 3) replace the statutory requirement that state publications be produced at state-operated facilities with a requirement that state publications be produced at a private sector facility located in the state when practicable. In addition, standards for the production of publications would be established by the Dept. of Administration, and a cost box would be required for all publication's exceeding $1,500. With that, he concluded his testimony. In answer to Co-chair Frank, Mr. Fink said that page 4, line 29, is where the section relating to printing of publications began. Co-chair Pearce believed this was the same language used in Co-chair Frank's bill that was in the house. Co-chair Pearce stated that amendment #1 was before the committee. She said it strengthened the cost box portion of SB 212. She said that it was not aimed at the Division of Tourism's planner because it was not required by statute. This was aimed at annual reports required by law from state agencies. SENATOR KELLY MOVED for adoption of amendment #1. Hearing no objection, it was ADOPTED. Senator Kelly MOVED for passage of CSSB 212(FIN) from committee with individual recommendations. No objection having been raised, CSSB 212(FIN) was REPORTED OUT of committee with a "do pass" recommendation, a zero fiscal note for the Department of Administration, a fiscal note for the Department of Administration-Statewide for $256.1, and a fiscal note for the Department of Transportation & Public Facilities in the amount of $5.0. Co-chairs Pearce and Frank, Senators Kelly, Sharp and Jacko voted "do pass." Senator Rieger voted "no recommendation."