STAND. COM. REP. NO. 2417

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2387
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 2387 entitled: 

     "A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this measure is to ensure the quality and
depth of the State's subcontractor pool by implementing
appropriate screening and protective measures.  

     This measure clarifies the selection process for public
procurement contracts of $25,000 or less.  This measure also
establishes penalties for contractors who retaliate against a
subcontractor in the event of a complaint or failure to
adequately address any complaints.

     Testimony in opposition to this measure was received from
the Department of Accounting and General Services, the State
Procurement Office, the Construction Industry Legislative
Organization, and the General Contractors Association of Hawaii.

     Your Committee finds that current Hawaii Administrative
Rules already provide similar language for procurement of
construction less than $25,000, and that this measure would be
duplicative.  After further discussion, your Committee has
amended this measure to enable the Department of Education, under
the procurement code, to sell to a disabled student who is
leaving the public educational system their individualized

 
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                                   STAND. COM. REP. NO. 2417
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assistive technology device.  The price of the device shall take
into consideration the depreciable life of the device.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 2387, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2387, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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