STAND

STAND. COM. REP. NO.3052

Honolulu, Hawaii

, 2002

RE: H.B. No. 2420

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs, to which was referred H.B. No. 2420, H.D. 1, entitled:

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

beg leave to report as follows:

The primary purposes of this measure are:

(1) To amend chapters 103 and 103D, Hawaii Revised Statutes (HRS), to clarify and consolidate certain provisions in those chapters;

(2) To establish a new online bidding process;

(3) To repeal chapter 102, HRS, relating to concessions, and to apply chapter 103D, HRS, to concessions contracts;

(4) To increase the small purchase procurement exception dollar ceilings from $25,000 to $100,000;

(5) To give the awarding procurement officer the discretion to determine when bid security is required; and

(6) To appropriate funds to the Procurement Office to effectuate the purposes of this measure.

Testimony in support of this measure was submitted by the State Procurement Office, the Department of Human Services, the Honolulu City and County Department of Budget and Fiscal Services, and the Board of Water Supply.

Testimony in opposition to this measure was submitted by Hertz, Avis, three members of Greeters of Hawaii, Island Shoppers, Inc., Alamo, Honolulu Publishing Company, Ltd., Dollar Rent-A-Car, ANC Rental Corporation, DFS Galleria, National Car Rental, the Airport Concessions Committee, the State Committee of Blind Vendors, the Hawaii Association of the Blind, Catrala-Hawaii, and a concerned citizen. The American Institute of Architects submitted comments.

Every organization and person testifying in opposition to this measure was opposed to repealing chapter 102, HRS, thereby subjecting concessions to the procurement provisions of chapter 103D, HRS.

Your Committees find that the remainder of the amendments contained in this measure are prudent.

Therefore, your Committees amended this measure to delete the section that proposed to repeal chapter 102, HRS, and related provisions. Your Committees also made numerous technical, nonsubstantive amendments to this measure for style, clarity, and accuracy.

Your Committees also amended this measure to increase the small purchase procurement exception dollar ceilings for public school repair and maintenance projects to $250,000.

Your Committees also amended this measure to establish a procurement preference for state residents.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2420, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2420, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation, Military Affairs and Government Operations and Tourism and Intergovernmental Affairs,

____________________________ DONNA MERCADO KIM, Chair		____________________________ CAL KAWAMOTO, Chair