Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred H.B. No. 511, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require bidders to post a bond when filing a protest of an award under the procurement code.

Testimony in support of this measure was submitted by the State Procurement Office, with recommendations for amendment. Testimony in opposition to this measure was submitted by the Hawaii Roofing Contractors Association, the Building Industry Association and one of its members, M. Torigoe Plumbing, Inc., the General Contractors Association of Hawaii, the Plumbing and Mechanical Contractors Association of Hawaii, T. Iida Contracting, Ltd., Dick Pacific Construction, Allied Builders System, and John H. Connors Insurance.

Due to nearly unanimous testimony in opposition to this measure, your Committee initially deferred action and distributed a proposed S.D. 1 version supplied by the State Procurement Office to each person and organization that testified in opposition to the original measure.

Your Committee finds that there is a need to strike a balance between discouraging frivolous protests to the procurement process and preserving the right of aggrieved bidders to protest.

Your Committee finds that the proposed S.D. 1 version strikes an appropriate balance. The proposed S.D. 1 amends section 103D-701, Hawaii Revised Statutes, by:

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 511, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 511, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.