STAND. COM. REP. NO. 1825

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1117
                                     S.D. 1
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1117, S.D. 1, H.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:

     (1)  Require the Procurement Policy Office, in consultation
          with the Department of Budget and Finance, to adopt
          rules for a managed procurement process that evaluates
          the efficiency, effectiveness, and economy of the
          purchase using uniform accounting standards; and

     (2)  Exempt contracts for legal services performed for the
          State or a state agency, outside Hawaii, from the
          requirements of the State Procurement Code.

     The Consulting Engineers Council of Hawaii testified in
support of Section 1 and commented on Section 2 of this measure.
The State Procurement Office and the Department of the Attorney
General commented on this measure.

     Your Committee has amended this measure by:

     (1)  Deleting the provisions adopting rules for a managed
          procurement process;

 
 
                                 STAND. COM. REP. NO. 1825
                                 Page 2

 

     (2)  Making subject to the State Procurement Code University
          of Hawaii (UH) departments and programs procuring goods
          and services from UH bookstores that are routinely
          stocked and marketed and not specifically ordered;

     (3)  Making subject to the State Procurement Code the
          procurement of goods or services for UH's Office of
          Intercollegiate Athletics with moneys from the UH
          Intercollegiate Athletics Revolving Fund;

     (4)  Clarifying that only specified goods or services may be
          exempt from the State Procurement Code when the goods
          or services are available from multiple sources but for
          which procurement by competitive means are either not
          practicable or not advantageous to the State;

     (5)  Adding to the list of goods or services exempt from the
          State Procurement Code, any other goods or services the
          Policy Board determines by rules or the Chief
          Procurement Officer determines in writing are available
          from multiple sources but for which procurement by
          competitive means is either not practicable or not
          advantageous to the State; and

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

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1117, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1117,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair