SB 95-COMPETITIVE BIDDING FOR BALLOT PREP  3:28:54 PM CHAIR FRENCH announced the consideration of SB 95. [Before the committee was CSSB 95(STA).] SENATOR BUNDE, sponsor of SB 95, said the bill was requested last fall. He told the committee that the state does lots of business with small businesses throughout Alaska. They are the back bone of our economy, he said. In doing business at many levels, the state encourages economic activities and to get the best product at the best price it uses competitive bidding. However, competitive bidding does not apply to printing ballots. It doesn't seem right and it's hard to believe there could only be one printer in the state. In fact there are various printing businesses across the state that should be given a chance at this project. 3:31:26 PM PATRICK FOSTER, AG Publishing and Printing, said he has been working in the print industry in Alaska for nearly 30 years. He supports SB 95 because he believes it is unfair that the Division of Elections sole-sources the printing of the state election ballots to a single shop on the Kenai Peninsula when there are many printing companies in Alaska that are fully capable of printing the ballots. He explained that the State of Alaska uses Diebold electronic ballot readers for the purpose of tallying results for its statewide elections. Diebold requires printing companies that print ballots destined for their machines to be certified by them. At the time the state adopted the use of these ballot readers 8 years ago, no companies in Alaska were certified. Shortly thereafter a small Alaska printing company was certified and the Division of Elections has been handing over the contract to that company ever since - despite the fact that a number of other Alaska printing companies have voiced a desire to be included in the process. His company became a certified Diebold printer in 2003. He understood the comfort level the division has in working with a printer that has proven to do a decent job and he tries to give his customers that same comfort and recently succeeded in a ballot printing contract for the Municipality of Anchorage. He said at first the clerk was uneasy about switching printing companies, but he has been told the city is happy with his product and it has benefited the city by having to pay less for its ballots. He has been printing ballots for them for the last three years. He thinks that the Division of Elections could develop a fine working relationship with any number of other printers. Some might think that printing a large number of ballots is a complex process. That is reason enough to leave things the way they are, but nothing is further from the truth. Printing a few hundred thousands ballots would be daunting for a small shop, but they would not bid on this project anyway. Alaska has many companies that are fully capable of handling this volume of work in the time required including handling the packaging and shipping logistics. MR. FOSTER said it's possible the division could be concerned with putting the ballots out to bid each election cycle and he recommended that each bid be awarded for an election cycle with a performance option for other ones. So it could go for four years without going out to bid. He thinks that opening printing of ballots up to competitive bid could save the state a substantial amount of money, which could be "spread around a little more to other business." The state would also not have to rely on just one printing company for printing its ballots. 3:35:59 PM CHAIR FRENCH found no further questions. He noted that Mr. Kendal submitted a letter for the bill packet. He asked if the bill would require that each election be competitively bid or could a two-election cycle package be put out to (RFP). SENATOR BUNDE replied it's within the Division of Elections' purview to develop its own guidelines and process. CHAIR FRENCH commented the process could be broken up by region. SENATOR WIELECHOWSKI asked for clarification of language on page 3, lines 30-31, that adds a new section. CHAIR FRENCH answered that section is simply the result of re- numbering. 3:38:02 PM JASON HOOLEY, Special Assistant for the Office of the Lieutenant Governor, said the current bill is a workable solution. CHAIR FRENCH found no further questions or testimony. SENATOR MCGUIRE motioned to report CSSB 95(STA) from committee with individual recommendations and attached fiscal note(s). There being no objection, it was so ordered.