SB 174-LEASES FOR LEGISLATIVE OFFICE SPACE  10:02:27 AM VICE-CHAIR GIESSEL announced the consideration of SB 174. She noted that SB 174 is sponsored by Senator Wielechowski. 10:02:41 AM MONICA SOUTHWORTH, Staff, Senator Wielechowski, Alaska State Legislature, Juneau, Alaska, explained that SB 174 will add two sections that establish how the legislature will solicit public comment in the event it seeks a lease with total payments exceeding $250,000 for the lease's entire term, including renewal options. MS. SOUTHWORTH explained the sectional analysis for SB 174 as follows: The first section amends section AS 24.20.060, which is the powers of the Legislative Council, it includes reference to the two new sections, Sections G and H. Section 2 adds the same references to Sections G and H. Section 3 adds in Sections G and H which establishes how the legislature will seek comment, and that is a process. The process is 14 days before a public hearing, there will be a notice on the legislature's website. The legislature will hold a public hearing that will provide the public with information, including details on the space that will be leased, terms of the lease, and how much the lease will cost. This will allow members of the public to voice their concerns, ask questions of the legislature, and give the legislators an opportunity to respond to those questions and concerns. There is a requirement for teleconferencing abilities included in there to allow access across the state to all of the Legislative Information Office (LIOs). After the public hearing, it allows a 30 day comment period for the public to submit comments. This is a similar process in which regulation changes seek comments for regulation changes. Section H is a definition and Section 4 adds the applicability section for the effective date. VICE-CHAIR GIESSEL asked to confirm that the bill includes a zero fiscal note. MS. SOUTHWORTH answered correct. 10:05:24 AM SENATOR COGHILL said public comment is a great thing. He asked if Section G was patterned after the regulation review process. MS. SOUTHWORTH answered yes. SENATOR COGHILL asked to clarify that the bill addresses a contracting against a regulatory issue. He inquired if there are any other contracts that are subject to the proposed review. MS. SOUTHWORTH answered no. She noted that there are executive sessions in which contracts are discussed. She explained that is not common practice to have the public comment period when reviewing contracts. She asserted that not having public comment is an oversight regarding large leases. She said there should be public input and review to some extent for large leases. SENATOR COGHILL offered that he has been on the Judicial Council and knows the council can be in executive session. He asked to verify that the bill will require public comment. MS. SOUTHWORTH answered that the bill only addresses leases the legislature enters into. She remarked that SB 174 stems from the recent lease with the Anchorage Legislative LIO. She asserted that the sponsor's intent was not to attack anyone on the issue, but given the number of calls to the committee members' offices about the Anchorage LIO concern, the belief was to have a conversation regarding large lease expenditures. She reiterated that the lease expenditure floor is over $250,000 for a lease's term. 10:07:34 AM SENATOR COGHILL replied that he lives in the Fairbanks area and his office has not received the calls. He remarked that he has seen the news accounts regarding the Anchorage LIO lease- purchase. He said he was open to the discussion and having the public input was probably an important part of the bill. He asked how a public comment process would occur with a situation similar to the Anchorage LIO lease. 10:08:46 AM CHAIR DYSON joined the committee meeting. MS. SOUTHWORTH answered that a public hearing would occur after a single-sourced procurement proposal was finalized. She explained that a 14 day notice would be provided where the Legislative Council confers with the Legislative Affairs Agency for a presentation that hears public comment. She added that a 30 day comment period would follow the public hearing. VICE-CHAIR GIESSEL asked if Ms. Southworth was aware of the discussion that had taken place in Legislative Council the previous evening regarding modifications to the Anchorage LIO lease. MS. SOUTHWORTH answered yes. VICE-CHAIR GIESSEL asked if lease modifications would also require a 30 day public hearing and comment period. MS. SOUTHWORTH replied that the bill only applies to single- sourced procurement leases. She noted that the Anchorage LIO lease was now going through the Alaska Housing Finance Corporation (AHFC) for a possible purchase and would require a bill to proceed with the eventual public comment. She said SB 174 would not apply to the Anchorage LIO lease-purchase. 10:11:16 AM SENATOR COGHILL asked if the Anchorage LIO avoids AHFC and reverts to a lease, would the proposed bill apply to the lease. MS. SOUTHWORTH answered yes. SENATOR COGHILL remarked that he did not have that big of a problem with the bill. CHAIR DYSON asked if anyone would like to testify. 10:11:58 AM CHAIR DYSON announced that the committee will stand at ease. 10:12:31 AM CHAIR DYSON called the committee back to order and asked if there are any other items of business to come before the committee. [SB 174 was heard and held in committee.]