Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 1261 entitled:

begs leave to report as follows:

The purpose of this bill is to allow purchases of goods and services by state and county agencies through the use of state-approved procurement cards.

The State Procurement Office and Department of Accounting and General Services testified in support of this bill.

Your Committee finds that the current system of paying for goods and services through the issuance of purchase orders and processing of invoices is cumbersome and incompatible with the goals of the State's Purchasing Card (pCard) program, which is currently being implemented to provide agencies with a more timely and efficient procurement system for small purchases. This measure will streamline purchase and payment processes and reduce attendant administrative burdens and costs.

For clarification, your Committee has amended this measure by defining a procurement card as a charge card utilized by government agencies for the purchase of goods and services in place of cash or purchase orders.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1261, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1261, H.D. 1, and be referred to the Committee on Finance.