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SCS CSHB 482(FIN): "An Act relating to lobbying contracts of state-related entities and involving lobbying contracts of state-related entities and state procurement practices and procedures; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 482(FIN)                                                                            
01 "An Act relating to lobbying contracts of state-related entities and involving                                          
02 lobbying contracts of state-related entities and state procurement practices and                                        
03 procedures; and providing for an effective date."                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 24.55.275 is amended to read:                                                                       
06  Sec. 24.55.275.  CONTRACT PROCEDURES.  The ombudsman shall adopt                                                      
07 by regulation procedures consistent with AS 36.30 to be followed by the office of the                                   
08 ombudsman in contracting for services.  However, the procedure for requests for                                         
09 proposals does not apply to contracts for investigations under AS 24.55.100, and the                                   
10 office of the ombudsman shall comply with AS 36.30.170(b).                                                             
11    * Sec. 2.  AS 36.30.015(e) is amended to read:                                                                       
12  (e)  The board of directors of the Alaska Railroad Corporation and the board                                          
13 of directors of the Alaska Aerospace Development Corporation shall adopt procedures                                     
14 to govern the procurement of supplies, services, professional services, and construction.                               
01 The procedures must be substantially equivalent to the procedures prescribed in this                                    
02 chapter and in regulations adopted under this chapter.  Notwithstanding the other                                      
03 provisions of this subsection, the Alaska Railroad Corporation and the Alaska                                           
04 Aerospace Development Corporation shall comply with AS 36.30.170(b).                                                   
05    * Sec. 3.  AS 36.30.015(f) is amended to read:                                                                       
06  (f)  The board of directors of the Alaska Housing Finance Corporation,                                                
07 notwithstanding AS 18.56.088, shall adopt regulations under AS 44.62 (Administrative                                    
08 Procedure Act) and the board of trustees of the Alaska State Pension Investment Board                                   
09 shall adopt regulations under AS 37.10.240 to govern the procurement of supplies,                                       
10 services, professional services, and construction for the respective public corporation                                 
11 and board.  The regulations must [(1)] reflect competitive bidding principles and                                       
12 provide vendors reasonable and equitable opportunities to participate in the                                            
13 procurement process [;] and must [(2)] include procurement methods to meet                                            
14 emergency and extraordinary circumstances.  Notwithstanding the other provisions                                       
15 of this subsection, the Alaska Housing Finance Corporation and the Alaska State                                         
16 Pension Investment Board shall comply with AS 36.30.170(b).                                                            
17    * Sec. 4.  AS 36.30.015(h) is amended to read:                                                                       
18  (h)  The board of directors of the Alaska Seafood Marketing Institute shall                                           
19 adopt procedures to govern the procurement of supplies, services, and professional                                      
20 services.  The procedures must be similar to the procedures prescribed in this chapter                                  
21 and in regulations adopted under this chapter, except that the Alaska Seafood                                          
22 Marketing Institute shall comply with AS 36.30.170(b).                                                                 
23    * Sec. 5.  AS 36.30.020 is amended to read:                                                                          
24  Sec. 36.30.020.  LEGISLATURE.  The Legislative Council shall adopt and                                                
25 publish procedures to govern the procurement of supplies, services, professional                                        
26 services, and construction by the legislative branch.  The procedures must be based on                                  
27 the competitive principles consistent with this chapter and must be adapted to the                                      
28 special needs of the legislative branch as determined by the Legislative Council.  The                                  
29 procedures must be consistent with the provisions of AS 36.30.080(c) - (e) and                                          
30 36.30.085.  Notwithstanding the other provisions of this section, the legislative                                      
31 agencies subject to the legislative council's regulations shall comply with                                             
01 AS 36.30.170(b).                                                                                                       
02    * Sec. 6.  AS 36.30.030 is amended to read:                                                                          
03  Sec. 36.30.030.  COURT SYSTEM.  The administrative director of courts shall                                           
04 adopt and publish procedures to govern the procurement of supplies, services,                                           
05 professional services, and construction by the judicial branch.  The procedures must                                    
06 be based on the competitive principles consistent with this chapter and must be adapted                                 
07 to the special needs of the judicial branch as determined by the administrative director                                
08 of courts.  The procedures must be consistent with the provisions of AS 36.30.080(c) -                                  
09 (e) and 36.30.085.  Notwithstanding the other provisions of this section, the judicial                                 
10 branch shall comply with AS 36.30.170(b).                                                                              
11    * Sec. 7.   AS 36.30.040(b)(4) is amended to read:                                                                   
12   (4)  conditions and procedures for the use of source selection methods                                               
13 authorized by this chapter, including single [SOLE] source procurements, emergency                                    
14 procurements, and small procurements;                                                                                   
15    * Sec. 8.  AS 36.30.040(b)(15) is amended to read:                                                                   
16   (15)  a bidder's or offeror's duties under this chapter [AS 36.30.115                                              
17 AND 36.30.210]; and                                                                                                     
18    * Sec. 9.  AS 36.30.050(a) is amended to read:                                                                       
19  (a)  Except for persons debarred or suspended under AS 36.30.635 -                                                   
20 36.30.655, the [THE] commissioner shall establish and maintain current lists of                                      
21 persons who desire to provide supplies, services, professional services, or construction                                
22 services to the state.                                                                                                  
23    * Sec. 10.  AS 36.30.080 is amended by adding a new subsection to read:                                              
24  (f)  When the department is acquiring leased space of 3,000 square feet or less,                                      
25 the department may procure the leased space using the procedures for small                                              
26 procurements under AS 36.30.320, providing public notice is given to prospective                                        
27 offerors in the market area.                                                                                            
28    * Sec. 11.  AS 36.30 is amended by adding a new section to read:                                                     
29  Sec. 36.30.083.  LEASE EXTENSIONS AUTHORIZED.  (a)  Notwithstanding                                                   
30 any other provision of this chapter, the department, the Board of Regents of the                                        
31 University of Alaska, the legislative council, or the court system may extend, for up                                   
01 to a maximum extension of 10 years, a real property lease that is entered into under                                    
02 this chapter including procedures and regulations adopted under AS 36.30.005(c),                                        
03 36.30.020, and 36.30.030 and has at least six months remaining under the lease term,                                    
04 if a minimum cost savings of                                                                                            
05   (1)  15 percent can be achieved on the rent due under the lease; or                                                  
06   (2) 10 percent can be achieved on the rent due under the lease and the                                               
07 lessor agrees to make modifications of the leased real property to bring the real                                       
08 property into compliance with the requirements of 42 U.S.C. 12101 - 12213                                               
09 (Americans with Disabilities Act of 1990).                                                                              
10  (b)  The cost savings under (a) of this section shall be calculated on the                                            
11 remaining term of the lease and any renewals, including extensions allowed under (a)                                    
12 of this section.                                                                                                        
13  (c)  The department, the University of Alaska, the court system, and the                                              
14 Legislative Affairs Agency shall submit individually an annual report to the Legislative                                
15 Budget and Audit Committee detailing the leases extended and the cost savings                                           
16 achieved by that entity under (a) or (b) of this section.  Reports are due August 31 of                                 
17 each year.                                                                                                              
18    * Sec. 12.  AS 36.30.115 is amended to read:                                                                         
19  Sec. 36.30.115.  SUBCONTRACTORS FOR CONSTRUCTION                                                                     
20 CONTRACTS.  (a)  Within five working days after the identification of the apparent                                     
21 low bidder for a construction contract, the apparent low bidder shall submit a list of                                
22 the subcontractors the bidder proposes to use in the performance of the construction                                  
23 contract.  The list must include the name and location of the place of business for each                                
24 subcontractor, [AND] evidence of each [THE] subcontractor's valid Alaska business                                   
25 license, and  [.  A BIDDER FOR A CONSTRUCTION CONTRACT SHALL ALSO                                                     
26 SUBMIT] evidence of each subcontractor's registration under AS 08.18.  If a                                             
27 subcontractor on the list did not have a valid Alaska business license and a valid                                      
28 certificate of registration under AS 08.18 at the time the bid was opened, the bidder                                   
29 may not use the subcontractor in the performance of the contract, and shall replace the                                 
30 subcontractor with a subcontractor who had a valid Alaska business license and a valid                                  
31 certificate of registration under AS 08.18 at the time the bid was opened.                                              
01  (b)  The apparent low [A] bidder for a construction contract may replace                                          
02 a listed subcontractor if the subcontractor                                                                             
03   (1)  fails to comply with AS 08.18;                                                                                  
04   (2)  files for bankruptcy or becomes insolvent;                                                                      
05   (3)  fails to execute a contract with the bidder involving performance                                               
06 of the work for which the subcontractor was listed and the bidder acted in good faith;                                  
07   (4)  fails to obtain bonding;                                                                                        
08   (5)  fails to obtain insurance acceptable to the state;                                                              
09   (6)  fails to perform the contract with the bidder involving work for                                                
10 which the subcontractor was listed;                                                                                     
11   (7)  must be substituted in order for the prime contractor to satisfy                                                
12 required state and federal affirmative action requirements;                                                             
13   (8)  refuses to agree or abide with the bidder's labor agreement; or                                                 
14   (9)  is determined by the procurement officer not to be a responsible                                                
15 subcontractor.                                                                                                          
16  (c)  If a bidder for a construction contract fails to list a subcontractor or lists                                 
17 more than one subcontractor for the same portion of work and the value of that work                                     
18 is in excess of half of one percent of the total bid, the bidder shall be considered to                                 
19 have agreed to perform that portion of work without the use of a subcontractor and to                                   
20 have represented the bidder to be qualified to perform that work.                                                       
21  (d)  A bidder for a construction contract who attempts to circumvent the                                            
22 requirements of this section by listing as a subcontractor another contractor who, in                                   
23 turn, sublets the majority of the work required under the contract violates this section.                               
24  (e)  If a construction contract is awarded to a bidder who violates this section,                                   
25 the procurement [PURCHASING] officer may                                                                              
26   (1)  cancel the contract; or                                                                                         
27   (2)  after notice and a hearing, assess a penalty on the bidder in an                                                
28 amount that does not exceed 10 percent of the value of the subcontract at issue.                                        
29    * Sec. 13.  AS 36.30.130(a) is amended to read:                                                                      
30  (a)  The procurement officer shall give adequate public notice of the invitation                                      
31 to bid at least 21 days before the date for the opening of bids.  If the procurement                                   
01 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice                                          
02 period is advantageous [NECESSARY] for a particular bid and adequate                                                 
03 competition is anticipated, the 21-day period may be shortened.  [THE                                                  
04 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER                                                            
05 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES.  THE                                                         
06 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF                                                                      
07 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR                                                                       
08 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE                                                                   
09 EQUIPMENT FLEET.]  Notice shall be published in the Alaska Administrative                                               
10 Journal. The time and manner of notice must be in accordance with regulations                                           
11 adopted by the commissioner of administration. When practicable, notice may include                                     
12   (1)  publication in a newspaper calculated to reach prospective bidders                                              
13 located in the state;                                                                                                   
14   (2)  notices posted in public places within the area where the work is                                               
15 to be performed or the material furnished; and                                                                          
16   (3)  notices mailed to all active prospective contractors on the                                                     
17 appropriate list maintained under AS 36.30.050                                                                          
18   (A)  if the contractors are located in the state;                                                                   
19   (B)  upon request, if the contractors are not located in the state.                                                 
20    * Sec. 14.  AS 36.30.170 is amended by adding a new subsection to read:                                              
21  (k)  In order to qualify for a preference under (c), (e), or (f) of this section, a                                   
22 bidder must add value by actually performing, controlling, managing, and supervising                                    
23 the services provided, or a bidder must have sold supplies of the general nature                                        
24 solicited to other state agencies, governments, or the general public.                                                  
25    * Sec. 15.  AS 36.30.200 is amended to read:                                                                         
26  Sec. 36.30.200.  CONDITIONS FOR USE.  (a)  Except as otherwise provided                                               
27 in this chapter, or unless specifically exempted by law, an agency contract shall be                                    
28 awarded by competitive sealed proposals if it is not awarded by competitive sealed                                      
29 bidding.  [CONSTRUCTION MAY ONLY BE PROCURED BY COMPETITIVE                                                             
30 SEALED PROPOSALS IF THE CONDITIONS UNDER (c) OF THIS SECTION ARE                                                        
31 MET.]                                                                                                                   
01  (b)  The commissioner may provide by regulation that it is either not                                                 
02 practicable or not advantageous to the state to procure specified types of supplies,                                    
03 services, or construction by competitive sealed bidding that would otherwise be                                         
04 procured by that method.  When the [CHIEF] procurement officer [, OR FOR                                                
05 CONSTRUCTION CONTRACTS OR PROCUREMENTS FOR THE STATE                                                                    
06 EQUIPMENT FLEET, THE COMMISSIONER OF TRANSPORTATION AND                                                                 
07 PUBLIC FACILITIES,] determines in writing with particularity that the use of                                          
08 competitive sealed proposals is more [BIDDING IS EITHER NOT PRACTICABLE                                               
09 OR NOT] advantageous to the state than competitive sealed bidding, a contract may                                     
10 be entered into by competitive sealed proposals [IN ACCORDANCE WITH THE                                                 
11 REGULATIONS.  WHEN IT IS DETERMINED THAT IT IS PRACTICABLE BUT                                                          
12 NOT ADVANTAGEOUS TO USE COMPETITIVE SEALED BIDDING, THE CHIEF                                                           
13 PROCUREMENT OFFICER OR COMMISSIONER OF TRANSPORTATION AND                                                               
14 PUBLIC FACILITIES SHALL SPECIFY WITH PARTICULARITY THE BASIS FOR                                                        
15 THE DETERMINATION].                                                                                                     
16  (c)  When the commissioner of transportation and public facilities [CHIEF                                           
17 PROCUREMENT OFFICER] determines that it is advantageous to the state, a                                                 
18 procurement officer may issue a request for proposals requesting the submission of                                      
19 offers to provide construction in accordance with a design provided by the offeror.                                     
20 The request for proposals shall require that each proposal submitted contain a single                                   
21 price that includes the design/build.                                                                                   
22    * Sec. 16.  AS 36.30.210 is repealed and reenacted to read:                                                          
23  Sec. 36.30.210.  REQUEST FOR PROPOSALS.  (a)  A request for competitive                                               
24 sealed proposals must contain the date, time, and place for delivering proposals, a                                     
25 specific description of the supplies, construction, services, or professional services to                               
26 be provided under the contract, and the terms under which the supplies, construction,                                   
27 services, or professional services are to be provided.                                                                  
28  (b)  An offeror for a construction contract shall submit evidence of the offeror's                                    
29 registration under AS 08.18.  A request for sealed proposals for a construction contract                                
30 must require the offeror, no later than five working days after the proposal that is the                                
31 most advantageous to the state is identified, to list subcontractors the offeror proposes                               
01 to use in the performance of the construction contract.  The list must include the                                      
02 information required under AS 36.30.115(a).  The provisions of AS 36.30.115(b) - (e)                                    
03 apply to competitive sealed proposals for construction contracts.                                                       
04  (c)  A request for proposals must contain that information necessary for an                                           
05 offeror to submit a proposal or contain references to any information that cannot                                       
06 reasonably be included with the request.  The request must provide a description of the                                 
07 factors that will be considered by the procurement officer when evaluating the                                          
08 proposals received, including the relative importance of price and other evaluation                                     
09 factors.                                                                                                                
10  (d)  Notice of a request for proposals shall be given in accordance with                                              
11 procedures under AS 36.30.130.  The procurement officer may use additional means                                        
12 considered appropriate to notify prospective offerors of the intent to enter into a                                     
13 contract through competitive sealed proposals.                                                                          
14  (e)  The offeror must have a valid Alaska business license at the time                                                
15 designated, in the request for proposals, for opening of the proposals.                                                 
16    * Sec. 17.  AS 36.30.230 is amended to read:                                                                         
17  Sec. 36.30.230.  DISCLOSURE OF PROPOSALS.  The procurement officer                                                    
18 shall open proposals so as to avoid disclosure of contents to competing offerors before                                
19 notice of intent to award a contract is issued [DURING THE PROCESS OF                                                  
20 NEGOTIATION].  A register of proposals containing the name and address of each                                          
21 offeror shall be prepared in accordance with regulations adopted by the commissioner.                                   
22 The register and the proposals are open for public inspection after the notice of intent                                
23 to award a contract is issued under AS 36.30.365.  To the extent that the offeror                                       
24 designates and the procurement officer concurs, trade secrets and other proprietary data                                
25 contained in the proposal documents are confidential.                                                                   
26    * Sec. 18.  AS 36.30.230 is amended by adding a new subsection to read:                                              
27  (b)  If a solicitation is cancelled under AS 36.30.350 after proposals are                                            
28 received but before a notice of intent to award a contract has been issued under                                        
29 AS 36.30.365, a protest of the solicitation or of the cancellation of the solicitation has                              
30 not been filed by an interested party under AS 36.30.560, and the time specified in                                     
31 AS 36.30.565(a) for filing such a protest has expired, the procurement officer may                                      
01 return a proposal to the offeror that made the proposal.  The procurement officer shall                                 
02 keep a list of returned proposals in the file for the solicitation.                                                     
03    * Sec. 19.  AS 36.30.260 is amended to read:                                                                         
04  Sec. 36.30.260.  CONTRACT EXECUTION.  A contract awarded under                                                        
05 competitive sealed proposals must contain                                                                               
06   (1)  a statement of the amount of the contract [STATED ON ITS                                                      
07 FIRST PAGE];                                                                                                            
08   (2)  the date for the supplies to be delivered or the dates for                                                      
09 construction, services, or professional services to begin and be completed;                                             
10   (3)  a description of the supplies, construction, services, or professional                                          
11 services to be provided; and                                                                                            
12   (4)  certification by the project director for the contracting agency, the                                           
13 head of the contracting agency, or a designee that sufficient money is [FUNDS ARE]                                    
14 available in an appropriation to be encumbered for the amount of the contract.                                          
15    * Sec. 20.  AS 36.30.300 is repealed and reenacted to read:                                                          
16  Sec. 36.30.300.  SINGLE SOURCE PROCUREMENTS.  (a)  A contract may                                                     
17 be awarded for supplies, services, professional services, or construction without                                       
18 competitive sealed bidding, competitive sealed proposals, or other competition in                                       
19 accordance with regulations adopted by the commissioner.  A contract may be awarded                                     
20 under this section only when the chief procurement officer or, for construction                                         
21 contracts or procurements for the state equipment fleet, the commissioner of                                            
22 transportation and public facilities determines in writing that                                                         
23   (1)  it is not practicable to award a contract by competitive sealed                                                 
24 bidding under AS 36.30.100, competitive sealed proposals under AS 36.30.200, or                                         
25 limited competition under AS 36.30.305; and                                                                             
26   (2)  award of the contract under this section is in the state's best interest.                                       
27  (b)  The using agency shall submit written evidence to support a request for a                                        
28 single source procurement.  The commissioner of administration or the commissioner                                      
29 of transportation and public facilities, as appropriate, may also require the submission                                
30 of cost or pricing data in connection with an award under this section.                                                 
31  (c)  To the extent practicable, the procurement officer shall negotiate with the                                      
01 single source to obtain contract terms advantageous to the state.                                                       
02  (d)  Procurement requirements may not be aggregated or structured so as to                                            
03 constitute a purchase under this section or to circumvent the source selection                                          
04 procedures required by AS 36.30.100 - 36.30.270.                                                                        
05  (e)  Except for procurements of supplies, services, professional services, or                                         
06 construction that do not exceed the amount for small procurements under                                                 
07 AS 36.30.320(a) as applicable, the authority to make a determination required by this                                   
08 section may not be delegated, even if the authority to contract is delegated under                                      
09 AS 36.30.015(a) and (b).                                                                                                
10    * Sec. 21.  AS 36.30.305(a) is amended to read:                                                                      
11  (a)  A construction contract under $100,000, or a contract for supplies,                                            
12 services, or professional services, [OR A CONSTRUCTION CONTRACT UNDER                                                 
13 $100,000,] may be awarded without competitive sealed bidding or competitive sealed                                      
14 proposals, in accordance with regulations adopted by the commissioner.  A contract                                      
15 may be awarded under this section only when the chief procurement officer [, OR,                                        
16 FOR CONSTRUCTION CONTRACTS UNDER $100,000 OR PROCUREMENTS                                                               
17 FOR THE STATE EQUIPMENT FLEET, THE COMMISSIONER OF                                                                      
18 TRANSPORTATION AND PUBLIC FACILITIES,] determines in writing that a                                                     
19 situation exists that makes competitive sealed bidding or competitive sealed proposals                                  
20 impractical or contrary to the public interest, except that the attorney general may                                   
21 make the determination for services of legal counsel, and the commissioner of                                           
22 transportation and public facilities may make the determination for construction                                        
23 contracts under $100,000 or procurements for the state equipment fleet.                                                
24 Procurements under this section shall be made with competition that is practicable                                      
25 under the circumstance.  Except for procurements of supplies, services, professional                                    
26 services, or construction that do not exceed the amount for small procurements under                                    
27 AS 36.30.320(a) [OR (b)], as applicable, the authority to make a determination                                          
28 required by this section may not be delegated.                                                                          
29    * Sec. 22.  AS 36.30.305(d) is amended to read:                                                                      
30  (d)  Single [SOLE] source procurements may not be made under this section.                                          
31    * Sec. 23.  AS 36.30 is amended by adding a new section to read:                                                     
01  Sec. 36.30.308.  INNOVATIVE PROCUREMENTS.  (a)  A contract may be                                                     
02 awarded for supplies, services, professional services, or construction using an                                         
03 innovative procurement process, with or without competitive sealed bidding or                                           
04 competitive sealed proposals, in accordance with regulations adopted by the                                             
05 commissioner.  A contract may be awarded under this section only when the chief                                         
06 procurement officer, or, for construction contracts or procurements of the state                                        
07 equipment fleet, the commissioner of transportation and public facilities, determines                                   
08 in writing that it is advantageous to the state to use an innovative competitive                                        
09 procurement process in the procurement of new or unique requirements of the state,                                      
10 new technologies, or to achieve best value.                                                                             
11  (b)  The procurement officer shall submit a procurement plan to the Department                                        
12 of Law for review and approval as to form before issuing the notice required by (c)                                     
13 of this section.                                                                                                        
14  (c)  A procurement under this section is subject to the requirements of                                               
15 AS 36.30.130.                                                                                                           
16  (d)  Nothing in this section precludes the adoption of regulations providing for                                      
17 the use of bonuses instead of preferences in a procurement of construction.                                             
18    * Sec. 24.  AS 36.30 is amended by adding new sections to read:                                                      
19  Sec. 36.30.311.  EMPLOYMENT AND YOUTH JOB TRAINING PROGRAM                                                            
20 PROCUREMENTS.  A procurement of products manufactured or services provided by                                           
21 an employment program of the state or an accredited youth education and employment                                      
22 program may be made without competitive sealed bidding or competitive sealed                                            
23 proposals, in accordance with regulations adopted by the commissioner.                                                  
24  Sec. 36.30.313.  CORRECTIONAL INDUSTRIES PROCUREMENTS.  A                                                             
25 procurement of products or services provided by the correctional industries program                                     
26 established under AS 33.32 may be made without competitive sealed bidding or                                            
27 competitive sealed proposals, in accordance with regulations adopted by the                                             
28 commissioner.                                                                                                           
29    * Sec. 25.  AS 36.30.315 is amended to read:                                                                         
30  Sec. 36.30.315.  FALSE STATEMENTS IN DETERMINATIONS [BY                                                             
31 CHIEF PROCUREMENT OFFICER]; CRIMINAL PENALTY.  (a)  In a determination                                                  
01 made by a state official [THE CHIEF PROCUREMENT OFFICER] under                                                        
02 AS 36.30.300 - 36.30.310, the state official making the determination [CHIEF                                          
03 PROCUREMENT OFFICER] shall independently examine the material facts of the                                              
04 procurement and independently determine whether the procurement is eligible for the                                     
05 procurement method requested.                                                                                           
06  (b)  If a state official [THE CHIEF PROCUREMENT OFFICER] knowingly                                                  
07 makes a false statement in a determination made [BY THE CHIEF PROCUREMENT                                               
08 OFFICER] under AS 36.30.300 - 36.30.310, the state official [CHIEF                                                    
09 PROCUREMENT OFFICER] is guilty of a class A misdemeanor.                                                                
10    * Sec. 26.  AS 36.30.320(a) is amended to read:                                                                      
11  (a)  A procurement for supplies, services, or professional services                                                 
12 [CONSTRUCTION] that does not exceed an aggregate dollar amount of $50,000,                                             
13 construction that does not exceed an aggregate dollar amount of $100,000, or lease                                      
14 of space that does not exceed 3,000 square feet [$25,000] may be made in                                               
15 accordance with regulations adopted by the commissioner for small procurements.                                         
16    * Sec. 27.  AS 36.30 is amended by adding a new section to read:                                                     
17  Sec. 36.30.331.  DELIVERY OF SUPPLIES.  Supplies purchased under this                                                 
18 chapter shall be delivered at a location within the state unless the department                                         
19 determines that a point of delivery outside the state would be in the best interest of the                              
20 state.  A bid or proposal involving the procurement of supplies must specify the                                        
21 delivery location and must state that the price is the delivered price at that location.                                
22    * Sec. 28.  AS 36.30 is amended by adding a new section to read:                                                     
23  Sec. 36.30.333.  PROCUREMENT OF PAPER.  Except as otherwise required                                                  
24 under AS 36.15.050, AS 36.30.322 - 36.30.332, and 36.30.334  - 36.30.338, when a                                        
25 state agency purchases paper, at least 25 percent of the quantity purchased must be                                     
26 recycled paper unless recycled paper is not available for the purchase or unless, after                                 
27 application of the procurement preference under AS 36.30.339, the recycled paper is                                     
28 more expensive than the nonrecycled paper.                                                                              
29    * Sec. 29.  AS 36.30 is amended by adding a new section to read:                                                     
30  Sec. 36.30.335.  PRODUCT PREFERENCES.   This chapter does not modify                                                  
31 AS 36.15.010 and 36.15.020 regarding preference for Alaska forest products, or                                          
01 AS 36.15.050 and 36.15.060 regarding preference for Alaska agricultural and fisheries                                   
02 products, except as provided in AS 36.30.170(b), (c), (e) - (h), and 36.30.339.                                         
03    * Sec. 30.  AS 36.30.520 is amended to read:                                                                         
04  Sec. 36.30.520.  RECORDS OF SINGLE [SOLE] SOURCE AND                                                                
05 EMERGENCY PROCUREMENTS.  (a)  The commissioner shall maintain for a                                                     
06 minimum of five years a record listing all single [SOLE] source procurement contracts                                 
07 made under AS 36.30.300 and emergency procurements made under AS 36.30.310.                                             
08 The record must contain                                                                                                 
09   (1)  each contractor's name;                                                                                         
10   (2)  the amount and type of each contract; and                                                                       
11   (3)  a listing of the supplies, services, professional services, or                                                  
12 construction procured under each contract.                                                                              
13  (b)  The Department of Transportation and Public Facilities and any agency to                                         
14 whom the commissioner of administration or the commissioner of transportation and                                       
15 public facilities has delegated procurement authority under AS 36.30.015 shall, by                                      
16 October 1 of each year, submit to the commissioner of administration records of the                                     
17 type specified in (a) of this section for emergency procurements made under                                            
18 AS 36.30.310.  The Department of Transportation and Public Facilities shall, even                                       
19 if procurement authority has been delegated under AS 36.30.015 to another                                               
20 agency, by October 1 of each year, submit to the commissioner of administration                                         
21 records of the type specified in (a) of this section for single source procurement                                      
22 contracts made under AS 36.30.300.  The commissioner of administration shall                                           
23 maintain these records as required by (a) of this section.                                                              
24    * Sec. 31.  AS 36.30 is amended by adding a new section to read:                                                     
25  Sec. 36.30.522.  RECORDS OF INNOVATIVE PROCUREMENTS.  The                                                             
26 commissioner and the contracting agency shall keep a file for each contract awarded                                     
27 under an innovative procurement process under AS 36.30.308.  The file is subject to                                     
28 inspection under the same standards as described in AS 36.30.140(b) and 36.30.230.                                      
29 The file kept by the commissioner must contain a summary of the information in the                                      
30 file of the contracting agency.  The file kept by the contracting agency must contain                                   
31  (1)  a copy of the contract;                                                                                         
01  (2)  the written determination under AS 36.30.308(a);                                                                
02   (3)  the procurement plan as approved as to form by the Department of                                                
03 Law;                                                                                                                    
04  (4)  the record of notice under AS 36.30.130; and                                                                    
05  (5)  the record of respondents to solicitation.                                                                      
06    * Sec. 32.  AS 36.30 is amended by adding a new section to article 9 to read:                                        
07  Sec. 36.30.550.  APPLICABILITY OF PROTEST AND APPEAL                                                                  
08 PROCEDURES.  (a)  Except for small procurements made under AS 36.30.320, the                                            
09 provisions of AS 36.30.560 - 36.30.615 apply to a solicitation, a proposed contract                                     
10 award, and an award of a contract for supplies, services, professional services, or                                     
11 construction.                                                                                                           
12  (b)  The commissioner shall adopt regulations providing for protest and appeal                                        
13 procedures of small procurements made under AS 36.30.320.                                                               
14    * Sec. 33.  AS 36.30.565(a) is repealed and reenacted to read:                                                       
15  (a)  A protest based on alleged improprieties or ambiguities in a solicitation                                        
16 must be filed at least 10 days before the due date of the bid or proposal, unless a later                               
17 protest due date is specifically allowed in the solicitation.  If a solicitation is made                                
18 with a shortened public notice period and the protest is based on alleged improprieties                                 
19 or ambiguities in the solicitation, the protest must be filed before the due date of the                                
20 bid or proposal.  Notwithstanding the other provisions in this subsection, the protest                                  
21 of an invitation to bid or a request for proposals in which a pre-bid or pre-proposal                                   
22 conference is held within 12 days of the due date must be filed before the due date of                                  
23 the bid or proposal if the protest is based on alleged improprieties or ambiguities in                                  
24 the solicitation.  A protest based upon alleged improprieties in an award of a contract                                 
25 or a proposed award of a contract must be filed within 10 days after a notice of intent                                 
26 to award the contract is issued by the procurement officer.                                                             
27    * Sec. 34.  AS 36.30.580(a) is amended to read:                                                                      
28  (a)  The procurement officer of the contracting agency shall issue a written                                          
29 decision containing the basis of the decision within 15 [14] days after a protest has                                 
30 been filed.  A copy of the decision shall be furnished to the protester by certified mail                               
31 or other method that provides evidence of receipt.                                                                      
01    * Sec. 35.  AS 36.30.580(b) is amended to read:                                                                      
02  (b)  The time for a decision may be extended up to 30 [26] days for good cause                                      
03 by the commissioner of administration, or, for protests involving construction or                                     
04 procurements for the state equipment fleet, the commissioner of transportation and                                      
05 public facilities.  If an extension is granted, the procurement officer shall notify the                                
06 protester in writing of the date that [OF] the decision is due.                                                       
07    * Sec. 36.  AS 36.30.585 is amended by adding a new subsection to read:                                              
08  (c)  Notwithstanding (a) and (b) of this section, if a protest is sustained in                                        
09 whole or part, the protester's damages are limited to reasonable bid or proposal                                        
10 preparation costs.                                                                                                      
11    * Sec. 37.  AS 36.30.605(a) is amended to read:                                                                     
12  (a)  The procurement officer of the contracting agency shall file a complete                                          
13 report on the protest and decision with the commissioner of administration or the                                       
14 commissioner of transportation and public facilities, as appropriate, within 10 [SEVEN]                               
15 days after a protest appeal is filed.  The procurement officer shall furnish a copy of                                  
16 the report to the protester and to interested parties that have requested a copy of the                                 
17 appeal under AS 36.30.595(b).                                                                                           
18    * Sec. 38.  AS 36.30.605(c) is amended to read:                                                                      
19  (c)  The protester may file comments on the protest report with the                                                   
20 commissioner of administration or the commissioner of transportation and public                                         
21 facilities, as appropriate, within 10 [SEVEN] days after the report is received.  The                                 
22 protester shall provide copies of the comments to the procurement officer and to                                        
23 interested parties that have requested a copy of the appeal under AS 36.30.595(b).                                      
24    * Sec. 39.  AS 36.30.620(a) is amended to read:                                                                      
25  (a)  A contractor shall file a claim concerning a contract awarded under this                                         
26 chapter with the procurement officer.  The contractor shall certify that the claim is                                   
27 made in good faith, that the supporting data are accurate and complete to the best of                                   
28 the contractor's knowledge and belief, and that the amount requested accurately                                         
29 reflects the contract adjustment for which the contractor believes the state is liable.                                
30 Except for a lease rate adjustment called for in the lease, a claim under this                                          
31 section must be filed within 90 days after the contractor becomes aware of the                                          
01 basis of the claim or should have known the basis of the claim, whichever is                                            
02 earlier.  A lease rate adjustment called for in the lease must be filed prior to the                                    
03 expiration date of the lease.                                                                                          
04    * Sec. 40.  AS 36.30.620 is amended by adding a new subsection to read:                                              
05  (g)  This section does not apply to payment disputes governed by                                                      
06 AS 37.05.285.                                                                                                           
07    * Sec. 41.  AS 36.30.655 is amended to read:                                                                         
08  Sec. 36.30.655.  LIST OF PERSONS DEBARRED OR SUSPENDED.  The                                                          
09 commissioner shall maintain a list of all persons debarred or suspended from                                            
10 consideration for award of contracts.  The commissioner shall remove a person                                          
11 debarred or suspended from the lists of contractors under AS 36.30.050 for the                                          
12 period of debarment or suspension.                                                                                     
13    * Sec. 42.  AS 36.30.850(b)(23) is amended to read:                                                                  
14   (23)  operation and protection of assets or disposals of equipment                                                
15 and supplies acquired through foreclosure or other legal proceedings relating to [OF]                                
16 loans issued under AS 03.10;                                                                                            
17    * Sec. 43.  AS 36.30.850(b) is amended by adding new paragraphs to read:                                             
18   (34)  procurements of contracts with the media for advertising;                                                      
19   (35)  purchases of livestock by a correctional industries program                                                    
20 established under AS 33.32.                                                                                             
21    * Sec. 44.  AS 36.30.910 is amended to read:                                                                         
22  Sec. 36.30.910.  PURCHASES THROUGH GENERAL SERVICES                                                                   
23 ADMINISTRATION.  Notwithstanding any other provision of this chapter, [THIS                                           
24 CHAPTER DOES NOT PREVENT] purchasing through the general services                                                       
25 administration or from federal supply schedules of the general services                                                
26 administration may be made without competitive sealed bidding, competitive                                              
27 sealed proposals, or other competition, so long as the purchasing is from persons                                       
28 located in the state in accordance with regulations adopted by the commissioner                                         
29 for purchases under this section and as provided under 41 U.S.C. 251 - 266 [BY                                       
30 LAW].                                                                                                                   
31    * Sec. 45.  AS 36.30.990 is amended by adding a new paragraph to read:                                               
01   (22)  "state official" means a public employee, public officer, or official                                          
02 of an agency.                                                                                                           
03    * Sec. 46.  AS 44.99 is amended by adding a new section to article 1 to read:                                        
04  Sec. 44.99.030.  LOBBYING CONTRACTS PROHIBITED.  (a)                                                                  
05 Notwithstanding other provisions of law, the following entities may not contract with                                   
06 a person to pay the person money or other thing of value to lobby the state, a                                          
07 municipality of the state, or an agency of the state or municipality:                                                   
08   (1)  Alaska Aerospace Development Corporation;                                                                       
09   (2)  Alaska Commercial Fishing and Agriculture Bank;                                                                 
10   (3)  Alaska Energy Authority;                                                                                        
11   (4)  Alaska Housing Finance Corporation;                                                                             
12   (5)  Alaska Industrial Development and Export Authority;                                                             
13   (6)  Alaska Medical Facility Authority;                                                                              
14   (7)  Alaska Mental Health Trust Authority;                                                                           
15   (8)  Alaska Municipal Bond Bank Authority;                                                                           
16   (9)  Alaska Permanent Fund Corporation;                                                                              
17   (10)  Alaska Railroad Corporation;                                                                                   
18   (11)  Alaska Science and Technology Foundation;                                                                      
19   (12)  Alaska Seafood Marketing Institute;                                                                            
20   (13)  Alaska Student Loan Corporation;                                                                               
21   (14)  Alaska Tourism Marketing Council.                                                                              
22  (b)  In this section,                                                                                                 
23   (1)  "lobby a municipality or an agency of a municipality" means to                                                  
24 engage in an activity for the purpose of influencing municipal legislative or                                           
25 administrative action if the activity is substantially the same as activity that would                                  
26 have required registration under AS 24.45.121 if the activity was for the purpose of                                    
27 influencing state legislative or administrative action;                                                                 
28   (2)  "lobby the state or an agency of the state" means to engage in an                                               
29 activity for which registration is required under AS 24.45.121.                                                         
30    * Sec. 47.  Section 3, ch. 59, SLA 1994, is amended to read:                                                         
31     Sec. 3.  AS 36.30.130(a) is repealed and reenacted to read:                                                        
01  (a)  The procurement officer shall give adequate public notice of the invitation                                      
02 to bid at least 21 days before the date for the opening of bids.  If the procurement                                   
03 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice                                          
04 period is advantageous [NECESSARY] for a particular bid and adequate                                                 
05 competition is anticipated, the 21-day period may be shortened.  [THE                                                  
06 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER                                                            
07 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES.  THE                                                         
08 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF                                                                      
09 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR                                                                       
10 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE                                                                   
11 EQUIPMENT FLEET.]  Notice shall be published in the Alaska Administrative                                               
12 Journal.  The time and manner of notice must be in accordance with regulations                                          
13 adopted by the commissioner of administration.  When practicable, notice may include                                    
14   (1)  publication in a newspaper calculated to reach prospective bidders;                                             
15   (2)  notices posted in public places within the area where the work is                                               
16 to be performed or the material furnished; and                                                                          
17   (3)  notices mailed to all active prospective contractors on the                                                     
18 appropriate list maintained under AS 36.30.050.                                                                         
19    * Sec. 48.  (a)  AS 36.30.015(c),  36.30.090,  36.30.095,  36.30.100(b), 36.30.850(b)(14),                           
20 and 36.30.900 are repealed.                                                                                             
21  (b)  AS 36.30.320(b) is repealed.                                                                                      
22    * Sec. 49.  REVISOR'S CHANGES.  The revisor of statutes is requested to change the                                   
23 heading of art. 5 of AS 36.30 from "Article 5. Preference for Alaska Products." to "Article 5.                          
24 Preferences."  Additionally, the revisor of statutes is requested to renumber AS 36.30.339 to                           
25 AS 36.30.337, to place that section in art. 5 of AS 36.30.                                                              
26    * Sec. 50.  TRANSITION:  REGULATIONS.  Notwithstanding secs. 54 - 56 of this Act,                                    
27 the commissioner of administration and the commissioner of transportation and public facilities                         
28 may proceed to adopt regulations necessary to implement respective changes in law enacted                               
29 by secs. 7 - 45 and 47 - 56 of this Act.  The regulations take effect under AS 44.62                                    
30 (Administrative Procedure Act), but not before the effective date of the change in law under                            
31 secs. 7 - 45 and 47 - 56 of this Act.                                                                                   
01    * Sec. 51.  APPLICABILITY.  Notwithstanding the changes in law made by secs. 1 - 45                                  
02 and 47 - 56 of this Act, the state agencies may continue to act on or consider a provision of                           
03 a solicitation, notice of intent to award, or response to solicitation made before the effective                        
04 date of the relevant change in law enacted by secs. 1 - 45 and 47 - 56 of this Act, to the                              
05 extent that the provision is not inconsistent with a provision of secs. 1 - 45 and 47 - 56 of this                      
06 Act.                                                                                                                    
07    * Sec. 52.  FIRST LEASE EXTENSION REPORT.  Notwithstanding AS 36.30.083(c),                                          
08 enacted by sec. 11 of this Act, the first lease extension report under AS 36.30.083(c) is due                           
09 August 31, 1997, and must cover fiscal year 1997.                                                                       
10    * Sec. 53.  Sections 8 - 13, 15, 19, 24, 25, 27 - 29, 41 - 43, 45, 48(a), and 49 - 52 of this                        
11 Act take effect immediately under AS 01.10.070(c).                                                                      
12    * Sec. 54.  Sections 1 - 7, 14, 16 - 18, 20 - 23, 26, 30, 31, 33 - 40, 44, and 48(b) of this                         
13 Act take effect September 30, 1996.                                                                                     
14    * Sec. 55.  Section 32 of this Act takes effect January 1, 1997.                                                     
15    * Sec. 56.  Section 47 of this Act takes effect August 22, 1998.