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 H.B. No. 1102 entitled:

begs leave to report as follows:

The purpose of this bill is to allow goods and services to be purchased by the State or counties through the use of procurement cards issued by banking institutions pursuant to a contract between the government agency and the financial institution.

Testimony in support of this bill was received from the Department of Accounting and General Services.

Your Committee finds that State-approved procurement cards for the purchase of goods and services by the State would operate as credit cards. Procurement cards would be issued by banking institutions and would require compliance with the terms and conditions of the procurement card contracts. Your Committee further finds that use of procurement cards would benefit both the State and vendors. Their use would reduce paperwork for the State and would be convenient for vendors, since vendors would be paid by banking institutions and would not have to submit separate invoices for payment by State-issued checks.

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 H.B. No. 1102 and recommends that it pass Second Reading and be referred to the Committee on Finance.