SENATE BILL NO. 12 "An Act relating to state and public entity procurement, including the State Procurement Code, procurement preferences, contract awards, the use of small procurement provisions for certain amounts of leased space, the Alaska business license requirement for Alaska bidder and other procurement preferences, the proof of registration of construction contract bidders and offerors, the establishment and maintenance of lists of persons who want to provide supplies or services to the state, state agencies, and state instrumentalities, electronic bids and proposals, the chief procurement officer, small procurements, and writings; relating to the meaning of 'Alaska bidder'; and providing for an effective date." 10:25:38 AM Vice-Chair Fairclough stated that SB 12 was an attempt to modify the procurement code and streamline the procurement processes. She pointed out that currently, there was some ambiguity in calculating the procurement bids. She related that the bill provided a specific point in time when an Alaska business license was required and increased the threshold under which state agencies may use an informal procurement process; the threshold was increased from $50,000 to $100,000 for good and services and from $100,000 to $200,000 for construction. The bill also increased the small procurement leased-space threshold from $3,000 to $7,000. She related that the legislation advanced the state into an electronic world through which electronic bids and signatures would be accepted. The bill eliminated an outdated vendor list and relocated all the preferences into the same spot in the Alaska Statutes, as well as clarified which preferences may be stacked and which one could not be combined. The legislation eliminated the "employers with disabilities" preference, reduced the chief procurement officer's pay from a range 27 to a range 25; collectively, the changes streamlined the procurement process and provided Alaskans a way to enter and engage in Alaska state service. She concluded that the bill provided more opportunities for Alaskans, particularly in rural Alaska. VERN JONES, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF ADMINISTRATION, introduced himself for the record. He related that the bill simplified, modernized, and clarified the procurement process. He pointed out that increasing the small procurement threshold made it possible to conduct more procurements in a less formal mode, which was easier for smaller businesses, particularly in rural areas. He stated that the bill would particularly help building owners who were leasing space to the state and that the legislation simplified the preferences. Currently, the Division of Vocational Rehab was required to get verification from an individual's doctors to verify disability status; the bill would allow for the acceptance of third party qualifications from entities such as the Social Security Administration and the Veterans Administration (VA). He believed the bill was easier to understand than the current law on the state practitioner side, as well as for the businesses that were engaging with the state. 10:30:31 AM Vice-Chair Fairclough was prepared to present a sectional analysis of the bill, but preferred to take questions afterwards in respect for those who were waiting online to testify. DAVE GLENN, SELF, PALMER (via teleconference), testified in support of the SB 12 and related that the stated Department of Labor and Workforce Development (DLWD) did not recognize disability certification from the VA. He related a personal story about DLWD rejecting a contract that he had submitted because his paperwork had been submitted from the VA. He stated that the DLWD's stance on this issue was inconsistent with everything else the state did for disabled veterans. He shared that his VA certification was recognized for discounted license plates, free hunting licenses, the state park and ferry systems, etc. He added that DLWD was the only department in the state that did not recognize disability certification from the VA. He recalled serving in the Vietnam War and being an "Agent Orange" victim. He expressed concerned for the troops returning from duty in Afghanistan and pointed out that he did not want to see these veterans treated like he had been when he returned home from Vietnam. He offered that veterans should not be discriminated against over a technicality, but should be afforded every opportunity to get their lives back in order. He concluded that the bill eliminated having to satisfy DLWD's requirements of a whole system of private doctors, expenses, etc. MIKE KOSKOVITCH, SELF, WASILLA (via teleconference), spoke in support of SB 12 and related his experiences with "Agent Orange." He believed that a disability certification from the VA should satisfy any requirement by the State of Alaska. He observed that veterans should be treated with the dignity and honor that they deserved and should not have to deal with bureaucratic obstacles. Co-Chair Meyer CLOSED public TESTIMONY on SB 12. 10:35:27 AM SB 12 was HEARD and HELD in committee for further consideration. Co-Chair Meyer discussed the following meeting's agenda. 10:35:55 AM