HB  24-PROCUREMENT PREFERENCE FOR VETERANS                                                                       
                                                                                                                                
9:34:32 AM                                                                                                                    
CHAIR MENARD  said the next order  of business to come  before the                                                              
committee  would   be  HB  24.   [CSHB  24(MLV)  was   before  the                                                              
committee.]                                                                                                                     
                                                                                                                                
MS.  KINEMAN said  HB  24  sets out  a  5 percent  preference  for                                                              
Alaska veterans  up to  $5,000. Most  procurements would  be under                                                              
$100,000  so the  $5,000 limit  would rarely  be applied.  Statute                                                              
currently  contains  several  other preferences  and  the  sponsor                                                              
believes that veterans  need to be taken care of  by giving them a                                                              
push into starting their own businesses.                                                                                        
                                                                                                                                
9:37:04 AM                                                                                                                    
VERN JONES,  chief procurement officer,  said he certainly  is not                                                              
opposed  to HB  24.  However,  HB 24  does  nothing  to solve  the                                                              
problems  with   the  procurement  code,  but  adds   yet  another                                                              
preference.  That makes a  total of  11 or  13 preferences.  HB 24                                                              
will  not  be difficult  or  expensive  to  implement but  HB  225                                                              
attempted to streamline and solve practical problems.                                                                           
                                                                                                                                
CHAIR MENARD  said the committee  recognizes that Mr. Jones  is in                                                              
a big dilemma but more work and time is needed.                                                                                 
                                                                                                                                
SENATOR  MEYER  said  a more  comprehensive  approach  could  take                                                              
place  over  the  interim  working   with  the  state  Chamber  of                                                              
Commerce and  businesses. He  thinks the  procurement code  can be                                                              
made less  confusing, lawsuits  might be  eliminated and  numerous                                                              
groups will  not need  to be  excluded. He  recognized that  HB 24                                                              
does not solve any problems.                                                                                                    
                                                                                                                                
SENATOR PASKVAN  said he understands  that something  that appears                                                              
to make sense, as applied, is actually anti-competitive.                                                                        
                                                                                                                                
9:41:34 AM                                                                                                                    
He said  HB 24 is  easy to  support but a  global analysis  of our                                                              
procurement  code  is  needed to  ensure  a  competitive  process,                                                              
based  on objective  standards,  and  to  track spending  in  each                                                              
preference category.                                                                                                            
                                                                                                                                
CHAIR  MENARD  commented  that  the  state's  lack  of  electronic                                                              
tracking is  disappointing. She  told Mr.  Jones the committee  is                                                              
not against revamping the procurement code.                                                                                     
                                                                                                                                
SENATOR FRENCH thanked  Mr. Jones for providing  him with examples                                                              
of how  the offerors  preference works.  That information  made it                                                              
clear that something  the offerors preference is  resulting in the                                                              
state  spending  millions of  dollars  for  projects with  only  a                                                              
tenuous connection to Alaskan employees and companies.                                                                          
                                                                                                                                
CHAIR  MENARD  said we  are  looking  for a  streamlined  tracking                                                              
system and what to do with the offerors preference.                                                                             
                                                                                                                                
9:44:01 AM                                                                                                                    
CHAIR MENARD closed public testimony.                                                                                           
                                                                                                                                
SENATOR  MEYER   moved  to  report  HB  24,   [26-LS0135\S],  from                                                              
committee   with  individual   recommendations  and   accompanying                                                              
fiscal notes.                                                                                                                   
                                                                                                                                
CHAIR MENARD announced  that without objection CSHB  24(MLV) moved                                                              
from the Senate State Affairs Standing Committee.