Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 458, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to amend the public procurement code to increase the small purchase procurement exception dollar ceiling to $250,000 for construction projects.

In addition, this measure establishes a preference in the procurement code for contractors that are Hawaii domestic corporations and provide all necessary documentation to the purchasing agency to demonstrate compliance with applicable Hawaii laws.

Your Committee finds that increasing the small purchase ceiling for construction projects will facilitate important state projects, particularly school repair and maintenance projects. Your Committee further finds that establishing a preference for contractors that are Hawaii domestic corporations and provide necessary documentation will ensure a level playing field so that Hawaii contractors may compete fairly with out-of-state contractors.

Upon further consideration, your Committee has amended this measure by changing the effective date to July 1, 3003.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 458, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 458, S.D. 2.