STAND. COM. REP. NO. 1409_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1117
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1117, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC PROCUREMENT
     CODE,"

begs leave to report as follows:

     The purpose of this bill is to require the Procurement
Policy Office to adopt rules for a managed procurement process
that evaluates the efficiency, effectiveness, and economy of the
purchase using uniform accounting standards.

     The Fewell Geotechnical Engineering, Ltd., Consulting
Structural Hawaii, Inc., Paul Louie & Associates, Inc., Hawaii
Pacific Engineers, Inc., the American Institute of Architects
Hawaii State Council, Consulting Engineers Council of Hawaii and
an individual submitted testimony in support of this bill.

     The State Procurement Office opposed this bill.  The State
Attorney General submitted comments.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Requiring the assistance of the Department of Budget
          and Finance in the adoption of rules for the managed
          procurement process;


 
 
                                 STAND. COM. REP. NO. 1409_______
                                 Page 2

 
     (2)  Inserting the contents of H.B. No. 1002, H.D. 1, which
          was heard earlier this session by the Committee on
          Judiciary and Hawaiian Affairs and exempts contracts
          for legal services outside Hawaii from the requirements
          of the State Procurement Code;

     (3)  Changing the effective date to July 30, 2001; and

     (4)  Making technical, nonsubstantive amendments for
          clarity, conformity, and style.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1117, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1117, S.D. 1, H.D. 1, and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair