STAND. COM. REP. NO.687
Honolulu, Hawaii
, 2001
RE: H.B. No. 511
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 511 entitled:
"A BILL FOR AN ACT RELATING TO REMEDIES OF PART VII, CHAPTER 103D, HAWAII REVISED STATUTES,"
begs leave to report as follows:
The purpose of this bill is to require any aggrieved bidder, offeror, or contractor to submit a protest bond when formally protesting an award of contract.
Testimony in favor of this measure was received from the State Procurement Office. The Building Industry Association of Hawaii commented on this measure. The General Contractors Association of Hawaii opposed this measure.
Your Committee recognizes that the requirement of a protest bond would greatly discourage the filing of frivolous protests. However, your Committee understands that by requiring a bond of a substantial amount would discourage those who are legitimately aggrieved to file a protest. Therefore, your Committee has amended this measure by:
(1) Creating three levels for offers or cost estimates for protest bonds and leaving the amount of the protest bond blank for each level for purposes of further discussion;
(2) Providing that protest bonds may be submitted no later than ten days after the date set for receipt of protest;
(3) Allowing alternate forms of collateral to be submitted in lieu of a protest bond; and
(4) Changing the effective date to January 1, 2002.
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 H.B. No. 511, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 511, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |