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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 12                                                                                                          
01 Relating to state and public entity procurement, including the State Procurement Code,                                  
02 procurement preferences, contract awards, the use of small procurement provisions for certain                           
03 amounts of leased space, the Alaska business license requirement for Alaska bidder and other                            
04 procurement preferences, the proof of registration of construction contract bidders and                                 
05 offerors, the establishment and maintenance of lists of persons who want to provide supplies                            
06 or services to the state, state agencies, and state instrumentalities, electronic bids and                              
07 proposals, the chief procurement officer, small procurements, and writings; relating to the                             
08 meaning of "Alaska bidder"; and providing for an effective date.                                                        
09                           _______________                                                                               
10    * Section 1. AS 24.55.275 is amended to read:                                                                      
11            Sec. 24.55.275. Contract procedures. The ombudsman shall adopt by                                          
01       regulation procedures consistent with AS 36.30 to be followed by the office of the                                
02       ombudsman in contracting for services. However, the procedure for requests for                                    
03       proposals does not apply to contracts for investigations under AS 24.55.100, and the                              
04       office of the ombudsman shall comply with the five percent preference under                                   
05       AS 36.30.321(a) [AS 36.30.170(b)].                                                                            
06    * Sec. 2. AS 36.15.050(a) is amended to read:                                                                      
07            (a)  When agricultural products are purchased by the state or by a school                                    
08       district that receives state money, a seven percent preference shall be applied to the                        
09       price of the products harvested in the state [ONLY AGRICULTURAL                                               
10       PRODUCTS HARVESTED IN THE STATE SHALL BE PURCHASED                                                                
11       WHENEVER PRICED NO MORE THAN SEVEN PERCENT ABOVE PRODUCTS                                                         
12       HARVESTED OUTSIDE THE STATE, AVAILABLE, AND OF LIKE QUALITY                                                       
13       COMPARED WITH AGRICULTURAL PRODUCTS HARVESTED OUTSIDE                                                             
14       THE STATE].                                                                                                       
15    * Sec. 3. AS 36.15.050(b) is amended to read:                                                                      
16            (b)  When fisheries products are purchased by the state or by a school district                              
17       that receives state money, a seven percent preference shall be applied to the price                           
18       of the products harvested or processed within the jurisdiction of the state [ONLY                             
19       FISHERIES PRODUCTS HARVESTED OR PROCESSED WITHIN THE                                                              
20       JURISDICTION OF THE STATE SHALL BE PURCHASED WHENEVER PRICED                                                      
21       NO MORE THAN SEVEN PERCENT ABOVE PRODUCTS HARVESTED OR                                                            
22       PROCESSED OUTSIDE THE JURISDICTION OF THE STATE, AVAILABLE,                                                       
23       AND OF LIKE QUALITY COMPARED WITH FISHERIES PRODUCTS                                                              
24       HARVESTED OR PROCESSED OUTSIDE THE JURISDICTION OF THE                                                            
25       STATE].                                                                                                           
26    * Sec. 4. AS 36.15.050 is amended by adding a new subsection to read:                                              
27            (h)  A bidder receiving a preference under this section may not receive a                                    
28       preference under AS 36.30.322.                                                                                    
29    * Sec. 5. AS 36.30.010(d) is amended to read:                                                                      
30            (d)  The annual salary of the chief procurement officer is range 25 [27] of the                          
31       salary schedule established in AS 39.27.011.                                                                      
01    * Sec. 6. AS 36.30.015(e) is amended to read:                                                                      
02            (e)  The board of directors of the Alaska Railroad Corporation and the board of                              
03       directors of the Alaska Aerospace Corporation shall adopt procedures to govern the                                
04       procurement of supplies, services, professional services, and construction. The                                   
05       procedures must be substantially equivalent to the procedures prescribed in this                                  
06       chapter and in regulations adopted under this chapter. Notwithstanding the other                                  
07       provisions of this subsection, the Alaska Railroad Corporation and the Alaska                                     
08       Aerospace Corporation shall comply with the five percent preference under                                     
09       AS 36.30.321(a) [AS 36.30.170(b)], and, when the Department of Transportation and                             
10       Public Facilities authorizes the Alaska Railroad Corporation to perform construction                              
11       work instead of the Department of Transportation and Public Facilities, the Alaska                                
12       Railroad Corporation shall use competitive sealed bidding or competitive sealed                                   
13       proposals under AS 36.30.100 - 36.30.270 to procure the supplies, services,                                       
14       professional services, and construction services necessary for the work and, to ensure                            
15       the state obtains the lowest cost for the project, may submit a bid or proposal for the                           
16       work.                                                                                                             
17    * Sec. 7. AS 36.30.015(f) is amended to read:                                                                      
18            (f)  The board of directors of the Alaska Housing Finance Corporation,                                       
19       notwithstanding AS 18.56.088, the membership of the Alaska Industrial Development                                 
20       and Export Authority, notwithstanding AS 44.88.085, and the board of directors of the                             
21       Knik Arm Bridge and Toll Authority under AS 19.75.111, shall adopt regulations                                    
22       under AS 44.62 (Administrative Procedure Act), and the board of trustees of the                                   
23       Alaska Retirement Management Board shall adopt regulations under AS 37.10.240, to                                 
24       govern the procurement of supplies, services, professional services, and construction                             
25       for the respective public corporation and board. The regulations must reflect                                     
26       competitive bidding principles and provide vendors reasonable and equitable                                       
27       opportunities to participate in the procurement process and must include procurement                              
28       methods to meet emergency and extraordinary circumstances. Notwithstanding the                                    
29       other provisions of this subsection, the Alaska Housing Finance Corporation, the                                  
30       Alaska Industrial Development and Export Authority, the Knik Arm Bridge and Toll                                  
31       Authority, and the Alaska Retirement Management Board shall comply with the five                              
01       percent preference under AS 36.30.321(a) [AS 36.30.170(b)].                                                   
02    * Sec. 8. AS 36.30.015(h) is amended to read:                                                                      
03            (h)  The board of directors of the Alaska Seafood Marketing Institute shall                                  
04       adopt procedures to govern the procurement of supplies, services, and professional                                
05       services. The procedures must be similar to the procedures prescribed in this chapter                             
06       and in regulations adopted under this chapter, except that the Alaska Seafood                                     
07       Marketing Institute shall comply with the five percent preference under                                       
08       AS 36.30.321(a) [AS 36.30.170(b)].                                                                            
09    * Sec. 9. AS 36.30.020 is amended to read:                                                                         
10            Sec. 36.30.020. Legislature. The legislative council shall adopt and publish                               
11       procedures to govern the procurement of supplies, services, professional services, and                            
12       construction by the legislative branch. The procedures must be based on the                                       
13       competitive principles consistent with this chapter and must be adapted to the special                            
14       needs of the legislative branch as determined by the legislative council. The                                     
15       procedures must contain provisions for prohibiting procurement from a person that has                             
16       headquarters in a country listed in Tier 3 of the most recent Trafficking in Persons                              
17       Report published by the United States Secretary of State under 22 U.S.C.                                          
18       7107(b)(1)(C). The procedures may contain provisions for restricting procurement                                  
19       from a person that conducts business in but does not have headquarters in a country                               
20       listed in Tier 3 of the most recent Trafficking in Persons Report published by the                                
21       United States Secretary of State under 22 U.S.C. 7107(b)(1)(C). The procedures must                               
22       be consistent with the provisions of AS 36.30.080(c) - (e) and 36.30.085.                                         
23       Notwithstanding the other provisions of this section, the legislative agencies subject to                         
24       the legislative council's regulations shall comply with the five percent preference                           
25       under AS 36.30.321(a) [AS 36.30.170(b)].                                                                      
26    * Sec. 10. AS 36.30.030 is amended to read:                                                                        
27            Sec. 36.30.030. Court system. The administrative director of the Alaska Court                              
28       System shall adopt and publish procedures to govern the procurement of supplies,                                  
29       services, professional services, and construction by the judicial branch. The                                     
30       procedures must be based on the competitive principles consistent with this chapter                               
31       and must be adapted to the special needs of the judicial branch as determined by the                              
01       administrative director of the Alaska Court System. The procedures must contain                                   
02       provisions for prohibiting procurement from a person that has headquarters in a                                   
03       country listed in Tier 3 of the most recent Trafficking in Persons Report published by                            
04       the United States Secretary of State under 22 U.S.C. 7107(b)(1)(C). The procedures                                
05       may contain provisions for restricting procurement from a person that conducts                                    
06       business in but does not have headquarters in a country listed in Tier 3 of the most                              
07       recent Trafficking in Persons Report published by the United States Secretary of State                            
08       under 22 U.S.C. 7107(b)(1)(C). The procedures must be consistent with the provisions                              
09       of AS 36.30.080(c) - (e) and 36.30.085. Notwithstanding the other provisions of this                              
10       section, the judicial branch shall comply with the five percent preference under                              
11       AS 36.30.321(a) [AS 36.30.170(b)].                                                                            
12    * Sec. 11. AS 36.30.080(f) is amended to read:                                                                     
13            (f)  When the department is acquiring leased space of 7,000 [3,000] square feet                          
14       or less, the department may procure the leased space using the procedures for small                               
15       procurements under AS 36.30.320, providing public notice is given to prospective                                  
16       offerors in the market area.                                                                                      
17    * Sec. 12. AS 36.30.110(b) is amended to read:                                                                     
18            (b)  The bidder shall [MUST] have a valid Alaska business license at the time                            
19       the contract is awarded. To qualify as an Alaska bidder under AS 36.30.321, a                                 
20       bidder shall have a valid Alaska business license at the time designated in the                               
21       invitation to bid for bid opening. A bidder for a construction contract shall also submit                         
22       proof [EVIDENCE] of the bidder's registration under AS 08.18 before the contract                          
23       may be awarded.                                                                                               
24    * Sec. 13. AS 36.30.130(a) is amended to read:                                                                     
25            (a)  The procurement officer shall give adequate public notice of the invitation                             
26       to bid at least 21 days before the date for the opening of bids. If the procurement                               
27       officer determines in writing that a shorter notice period is advantageous for a                                  
28       particular bid and adequate competition is anticipated, the 21-day period may be                                  
29       shortened. Notice shall be posted on the Alaska Online Public Notice System                                       
30       (AS 44.62.175). The time and manner of notice must be in accordance with                                          
31       regulations adopted by the commissioner of administration. When practicable, notice                               
01       may include                                                                                                       
02                 (1)  publication in a newspaper calculated to reach prospective bidders;                                
03       and                                                                                                           
04                 (2)  notices posted in public places within the area where the work is to                               
05       be performed or the material furnished [; AND                                                                     
06                 (3)  NOTICES MAILED TO ALL ACTIVE PROSPECTIVE                                                           
07       CONTRACTORS ON THE APPROPRIATE LIST MAINTAINED UNDER                                                              
08       AS 36.30.050].                                                                                                    
09    * Sec. 14. AS 36.30.170 is repealed and reenacted to read:                                                         
10            Sec. 36.30.170. Contract award after bids. After applying any preferences                                  
11       that apply under AS 36.15.050 and AS 36.30.321 - 36.30.338, a procurement officer                                 
12       shall award a contract based on the solicited bids with reasonable promptness by                                  
13       written notice to the lowest responsible and responsive bidder whose bid conforms in                              
14       all material respects to the requirements and criteria set out in the invitation to bid.                          
15    * Sec. 15. AS 36.30.210(b) is amended to read:                                                                     
16            (b)  An offeror for a construction contract shall submit proof [EVIDENCE] of                             
17       the offeror's registration as a contractor under AS 08.18 before the contract may be                          
18       awarded. A request for sealed proposals for a construction contract, except a design-                         
19       build construction contract, must require the offeror, not [NO] later than five working                       
20       days after the proposal that is the most advantageous to the state is identified, to list                         
21       subcontractors the offeror proposes to use in the performance of the construction                                 
22       contract. The list must include the information required under AS 36.30.115(a). The                               
23       provisions of AS 36.30.115(b) - (g) that apply to a construction contractor or an                                 
24       apparent low bidder apply to offerors submitting competitive sealed proposals for                                 
25       construction contracts, except design-build construction contracts.                                               
26    * Sec. 16. AS 36.30.210(e) is amended to read:                                                                     
27            (e)  The offeror shall [MUST] have a valid Alaska business license at the time                           
28       the contract is awarded. To qualify as an Alaska bidder under AS 36.30.321, an                                
29       offeror shall have a valid Alaska business license at the time designated [,] in the                          
30       request for proposals [,] for opening of the proposals.                                                           
31    * Sec. 17. AS 36.30 is amended by adding a new section to article 4 to read:                                       
01            Sec. 36.30.290. Electronic bids and proposals. An agency may allow bids or                                 
02       proposals to be submitted in electronic form under AS 09.80 (Uniform Electronic                                   
03       Transactions Act).                                                                                                
04    * Sec. 18. AS 36.30.320(a) is amended to read:                                                                     
05            (a)  A procurement for supplies, services, or professional services that does not                            
06       exceed an aggregate dollar amount of $100,000 [$50,000], construction that does not                           
07       exceed an aggregate dollar amount of $200,000 [$100,000], or lease of space that does                         
08       not exceed 7,000 [3,000] square feet shall [MAY] be made under [IN                                    
09       ACCORDANCE WITH] regulations adopted by the commissioner for small                                                
10       procurements.                                                                                                     
11    * Sec. 19. AS 36.30 is amended by adding a new section to article 5 to read:                                       
12            Sec. 36.30.321. Alaska bidder and related preferences. (a) If the bidder or                                
13       offeror is an Alaska bidder, a five percent preference shall be applied to the price in                           
14       the bid or proposal.                                                                                              
15            (b)  Except as otherwise provided in (d), (e), or (g) of this section, if a bidder                           
16       or offeror qualifies as an Alaska bidder and is offering services through an                                      
17       employment program, a 15 percent preference shall be applied to the price in the bid                              
18       or proposal.                                                                                                      
19            (c)  If a bidder or offeror qualifies as an Alaska bidder and is an Alaska                                   
20       domestic insurer, and if the procurement is for an insurance-related contract, a five                             
21       percent preference shall be applied to the price in the bid or proposal.                                          
22            (d)  A 10 percent preference shall be applied to a price in a bid or proposal if                             
23       the bidder or offeror qualifies as an Alaska bidder and is a                                                      
24                 (1)  sole proprietorship owned by a person with a disability;                                           
25                 (2)  partnership under AS 32.06 or AS 32.11 if each of the partners is a                                
26       person with a disability;                                                                                         
27                 (3)  limited liability company organized under AS 10.50 if each of the                                  
28       members is a person with a disability;                                                                            
29                 (4)  corporation that is wholly owned by individuals, and each of the                                   
30       individuals is a person with a disability; or                                                                     
31                 (5)  joint venture that is composed of ventures that qualify under (1) -                                
01       (4) of this subsection.                                                                                           
02            (e)  The division of vocational rehabilitation in the Department of Labor and                                
03       Workforce Development shall add to its current list of qualified employment programs                              
04       a list of individuals who qualify as persons with a disability under (d) of this section.                         
05       To qualify for a preference under (d) of this section, a person must be on the list at the                        
06       time the bid or proposal is opened.                                                                               
07            (f)  If a bidder or offeror qualifies as an Alaska bidder and is a qualifying                                
08       entity, a five percent preference shall be applied to the price in the bid or proposal.                           
09       The preference may not exceed $5,000. In this subsection,                                                         
10                 (1)  "Alaska veteran" means an individual who is both a resident of the                                 
11       state and a veteran;                                                                                              
12                 (2)  "qualifying entity" means a                                                                        
13                      (A)  sole proprietorship owned by an Alaska veteran;                                               
14                      (B)  partnership under AS 32.06 or AS 32.11 if a majority of the                                   
15            partners are Alaska veterans;                                                                                
16                      (C)  limited liability company organized under AS 10.50 if a                                       
17            majority of the members are Alaska veterans; or                                                              
18                      (D)  corporation that is wholly owned by individuals, and a                                        
19            majority of the individuals are Alaska veterans;                                                             
20                 (3)  "veteran" means an individual who                                                                  
21                      (A)  served in the                                                                                 
22                           (i)  armed forces of the United States, including a                                           
23                 reserve unit of the United States armed forces; or                                                      
24                           (ii)  Alaska Territorial Guard, the Alaska Army National                                      
25                 Guard, the Alaska Air National Guard, or the Alaska Naval Militia; and                                  
26                      (B)  was separated from service under a condition that was not                                     
27            dishonorable.                                                                                                
28            (g)  A bidder or offeror may not receive a preference under both (b) and (d) of                              
29       this section for the same contract.                                                                               
30            (h)  Except as provided by (j) of this section, this section applies to all                                  
31       insurance contracts involving state money. In this subsection, "state money" has the                              
01       meaning given in AS 36.30.990, but also includes state grants and reimbursements to                               
02       municipalities, school districts, and other entities.                                                             
03            (i)  To qualify for a preference under (b), (d), or (f) of this section, a bidder or                         
04       offeror must add value by actually performing, controlling, managing, and supervising                             
05       the services provided, or the bidder or offeror must have sold supplies of the general                            
06       nature solicited to other state agencies, other governments, or the general public.                               
07            (j)  This section does not apply to solicitations or contracts for lease space                               
08       under AS 36.30.080, to procurements under AS 36.30.305 - 36.30.310 or, except as                                  
09       provided otherwise by regulation under AS 36.30.320, to small procurements under                                  
10       AS 36.30.320.                                                                                                     
11            (k)  In this section, "person with a disability" means an individual who                                     
12                 (1)  has been determined to be permanently disabled by the                                              
13                      (A)  United States Social Security Administration under 42                                         
14            U.S.C. 423 or 1381 - 1383f (Social Security Act);                                                            
15                      (B)  teachers' retirement system under AS 14.25, the judicial                                      
16            retirement system under AS 22.25, the public employees' retirement system                                    
17            under AS 39.35, or the elected public officers' retirement system under former                               
18            AS 39.37;                                                                                                    
19                      (C)  Federal Civil Service Retirement System under 5 U.S.C.                                        
20            2107, 3323, and 8331 - 8351;                                                                                 
21                      (D)  federal employees' retirement system under 5 U.S.C. 8401                                      
22            - 8480; or                                                                                                   
23                      (E)  division of vocational rehabilitation in the Department of                                    
24            Labor and Workforce Development using disability standards under 42 U.S.C.                                   
25            1381 - 1383f (Social Security Act) for eligibility for certain state disability                              
26            programs;                                                                                                    
27                 (2)  is receiving permanent total disability under AS 23.30 (Alaska                                     
28       Workers' Compensation Act);                                                                                       
29                 (3)  has been discharged from military service under honorable                                          
30       conditions and is certified by the United States Department of Veterans Affairs as                                
31       having incurred a 50 percent or greater disability during military service; or                                    
01                 (4)  has served in the Alaska Territorial Guard and incurred a 50                                       
02       percent or greater disability while serving in the Alaska Territorial Guard.                                      
03    * Sec. 20. AS 36.30.322(a) is amended to read:                                                                     
04            (a)  Only timber, lumber, and manufactured lumber products originating in this                               
05       state from Alaska forests may be procured by an agency or used in construction                                    
06       projects of an agency unless                                                                                      
07                 (1)  the manufacturers and suppliers who have notified the                                          
08       commissioner of commerce, community, and economic development of their                                            
09       willingness to manufacture or supply Alaska forest products                                                       
10                 [(1)]  have been given reasonable notice of the forest product needs of                                 
11       the procurement or project; and                                                                                   
12                 (2)  a manufacturer or supplier who has notified the commissioner                                   
13       of commerce, community, and economic development of its willingness to                                        
14       manufacture or supply Alaska forest products is not the low bidder after all                                  
15       applicable preferences have been applied to the price of the qualifying forest                                
16       product under AS 36.30.336 [ARE UNABLE TO SUPPLY THE PRODUCTS AT A                                            
17       COST THAT IS WITHIN SEVEN PERCENT OF THE PRICE OFFERED BY A                                                       
18       MANUFACTURER OR SUPPLIER OF NON-ALASKA FOREST PRODUCTS].                                                          
19    * Sec. 21. AS 36.30.336 is repealed and reenacted to read:                                                         
20            Sec. 36.30.336. Application of preferences. (a) Except as provided in                                      
21       AS 36.15.050(h) and AS 36.30.321(g), the preferences provided in AS 36.15.050 and                                 
22       AS 36.30.321 - 36.30.338 are cumulative. A bidder who would otherwise qualify for                                 
23       preferences under AS 36.30.321 may not be given a preference over another bidder                                  
24       who qualifies for the same preferences.                                                                           
25            (b)  Notwithstanding the other provisions of this chapter, AS 36.30.321 -                                    
26       36.30.338 apply to all procurements subject to this chapter, except as provided in                                
27       AS 36.15.050(h) and AS 36.30.322(b).                                                                              
28    * Sec. 22. AS 36.30.655 is amended to read:                                                                        
29            Sec. 36.30.655. List of persons debarred or suspended [; REMOVAL                                           
30       FROM CONTRACTOR LISTS]. The commissioner shall maintain a list of all                                           
31       persons debarred or suspended from consideration for the award of contracts. [THE                             
01       COMMISSIONER SHALL REMOVE A PERSON DEBARRED OR SUSPENDED                                                          
02       FROM THE LISTS OF CONTRACTORS UNDER AS 36.30.050 FOR THE PERIOD                                                   
03       OF DEBARMENT OR SUSPENSION.]                                                                                      
04    * Sec. 23. AS 36.30.990 is amended by adding new paragraphs to read:                                               
05                 (25)  "Alaska bidder" means a person who                                                                
06                      (A)  holds a current Alaska business license;                                                      
07                      (B)  submits a bid or proposal for goods, services, or                                             
08            construction under the name appearing on the person's current Alaska business                                
09            license;                                                                                                     
10                      (C)  has maintained a place of business in the state staffed by                                    
11            the bidder or offeror or an employee of the bidder or offeror for a period of six                            
12            months immediately preceding the date of the bid or proposal;                                                
13                      (D)  is incorporated or qualified to do business under the laws                                    
14            of the state, is a sole proprietorship and the proprietor is a resident of the state,                        
15            is a limited liability company organized under AS 10.50 and all members are                                  
16            residents of the state, or is a partnership under former AS 32.05, AS 32.06, or                              
17            AS 32.11 and all partners are residents of the state; and                                                    
18                      (E)  if a joint venture, is composed entirely of ventures that                                     
19            qualify under (A) - (D) of this paragraph;                                                                   
20                 (26)  "in writing" has the meaning given to "written" in this section;                                  
21                 (27)  "written" means the product of forming characters on paper, other                                 
22       materials, or viewable screens, that can be read, retrieved, and reproduced, including                            
23       information that is electronically transmitted and stored.                                                        
24    * Sec. 24. AS 36.90.049(a) is amended to read:                                                                     
25            (a)  A marine vessel owned by the state shall be maintained and repaired at a                                
26       shipyard facility located in the state unless the commissioner of the department that                             
27       operates the marine vessel determines in writing that there is no shipyard facility                               
28       located in the state that is equipped or qualified to perform the particular maintenance                          
29       or repair required, or, after taking into consideration the five percent [ALASKA                              
30       BIDDER] preference under AS 36.30.321(a) [SET OUT IN AS 36.30.170] and the                                    
31       interport differential, that the proposed cost of the maintenance or repair work is                               
01       unreasonable. A detailed list of the costs and factors considered in calculating the                              
02       interport differential must be provided to each person who expresses an interest in                               
03       submitting a bid to perform maintenance or repair work on a marine vessel owned by                                
04       the state.                                                                                                        
05    * Sec. 25. AS 38.35.017(a) is amended to read:                                                                     
06            (a)  Consistent with and in furtherance of the statements of general state policy                            
07       guiding resource development set out in art. VIII, sec. 1, Constitution of the State of                           
08       Alaska, that the resources of the state be developed "by making them available for                                
09       maximum use consistent with the public interest" and in art. VIII, sec. 2, Constitution                           
10       of the State of Alaska, directing that provision shall be made by the legislature for "the                        
11       utilization, development, and conservation of all natural resources belonging to the                              
12       State . . . for the maximum benefit of its people," and consistent with and in                                    
13       furtherance of the general legislative declaration of policy for this chapter set out in                          
14       AS 38.35.010, it is the policy of this state that the overall strategy for development,                           
15       use, and control of a pipeline or pipelines to develop the state's substantial North Slope                        
16       natural gas resources be directed                                                                                 
17                 (1)  to enhance the standard of living of state residents by                                            
18                      (A)  ensuring that, in conjunction with out-of-state market                                        
19            driven commercial demand for North Slope natural gas, state residents and                                    
20            businesses will have access, directly or indirectly, to that portion of the gas that                         
21            will meet the reasonably foreseeable in-state demands for it, including                                      
22            substitution of the North Slope natural gas for depleting gas reserves in                                    
23            Southcentral Alaska in order to maintain a vital domestic and industrial energy                              
24            source, and ensuring that the pipeline or pipelines for the transportation of                                
25            North Slope natural gas will be designed and located to be responsive to these                               
26            requirements;                                                                                                
27                      (B)  making the maximum contribution to the development of                                         
28            job opportunities in this state by                                                                           
29                           (i)  providing direct short-term construction and long-                                       
30                 term operation- and maintenance-related employment on the pipeline or                                   
31                 pipelines, to the end that the resources be developed with qualified                                    
01                 contractors and firms in this state for work to be performed, including                                 
02                 the fabrication and installation of required facilities, and that state                                 
03                 residents be employed, consistent with law; for purposes of this sub-                                   
04                 subparagraph, a person is considered a resident if the person is                                        
05                 physically present in the state with the intent to remain in the state                                  
06                 indefinitely and has a home in the state, and a contractor or firm is                                   
07                 considered as qualified if the contractor or firm qualifies as an Alaska                                
08                 bidder; in this sub-subparagraph, "Alaska bidder" has the meaning                                   
09                 given in AS 36.30.990 [UNDER AS 36.30.170(b)]; and                                                  
10                           (ii)  providing necessary support services; and                                               
11                      (C)  adding significant long-term property value to the tax base                                   
12            of the state and local governments, thereby providing the means to support                                   
13            public education, public health, transportation, and other essential state and                               
14            local government projects and services;                                                                      
15                 (2)  to ensure that the design, location, and construction of a pipeline or                             
16       pipelines for delivery of North Slope natural gas to North American markets through                               
17       connection to the North American natural gas pipeline network enhance opportunities                               
18       for implementing gas deliveries using alternative technologies and the construction of                            
19       other pipelines to deliver North Slope natural gas to foreign and domestic markets; and                           
20                 (3)  to ensure construction of the pipeline or pipelines consistent with                                
21       careful protection of the state's natural environment, with minimum environmental                                 
22       degradation, to the greatest extent possible, and with protection of fish, wildlife, and                          
23       biotic resources for the use of persons who depend upon them by using available                                   
24       transportation infrastructure to initiate and complete project construction and                                   
25       maintenance and by avoiding duplication of facilities.                                                            
26    * Sec. 26. AS 36.30.050, 36.30.175, 36.30.250(b), and 36.30.335 are repealed.                                      
27    * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       TRANSITION: PENDING SOLICITATIONS FOR PROCUREMENTS AND                                                            
30 CONTRACTS. (a) This Act does not apply to                                                                               
31            (1)  solicitations for procurement and the resulting contracts, if the solicitations                         
01 are pending on the effective date of this Act and if the invitation to bid or other solicitation                        
02 was issued before the effective date of this Act; and                                                                   
03            (2)  procurement contracts entered into before the effective date of this Act,                               
04 including extensions or amendments of those contracts.                                                                  
05       (b)  Notwithstanding (a) of this section, this Act applies to procurements or contracts                           
06 described in (a)(1) of this section if all parties to the procurement or contract agree in writing                      
07 that the applicable provisions of this Act apply to the solicitation or contract.                                       
08    * Sec. 28. This Act takes effect immediately under AS 01.10.070(c).                                                
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