Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 1261 entitled:

begs leave to report as follows:

The purpose of this measure is to statutorily authorize procurement of goods and services through the use of state-approved procurement cards.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services and the State Procurement Office.

Your Committee finds that the State is implementing a purchasing card program, which shall provide state agencies a means by which small purchase and payment operations can be streamlined to provide a more timely and efficient system of purchasing and paying for goods and services.

The procurement card will operate like a credit card for state agencies, and greatly reduce the traditional administrative burdens and costs associated with issuing purchase orders and processing invoices for payment.

Your Committee supports the procurement card process, and finds that the amendments to chapter 103, Hawaii Revised Statutes, contained in this measure are necessary to implement the system.

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 S.B. No. 1261 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.