STAND. COM. REP. NO. 748

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 797
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 797, S.D. 1, entitled:

     "A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to limit the total amount of
nonbid contracts awarded to any one individual, sole
proprietorship, corporation, limited liability company, firm,
partnership, business, joint venture, joint stock company, group,
hui, society, association, or similar entity within a five-year
period.

     In addition, this bill:

     (1)  Allows the Governor to grant special approval to award
          more than the limit of nonbid contracts permitted by
          law, based upon a recommendation from the administrator
          of the state procurement office after a public hearing;

     (2)  Allows the awarding of more than the limit of nonbid
          contracts permitted by law if all contractors the chief
          procurement officer has determined to be eligible to
          bid on nonbid contracts have received at least one
          contract award within the five-year period;


 
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     (3)  Requires the chief procurement officer to maintain a
          record of all procurements for goods, services, or
          construction of $25,000 or more made by competitive
          sealed proposals and by small purchases of less than
          $25,000; and

     (4)  Repeals the requirement that the chief procurement
          officer maintain a record of all procurements for goods
          or services that are available from multiple sources,
          but for which procurement by competitive means is
          either not practicable or not advantageous to the
          State.

     Your Committee has amended this bill by requiring the chief
procurement officer to electronically post the name of each
contractor awarded a contract for goods, services, or
construction under the procurement code; the amount and type of
the contract; and the goods, services, or construction procured
under the contract.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
797, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 797, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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