Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Higher Education, to which was referred S.B. No. 1038 entitled:

beg leave to report as follows:

The purpose of this measure is to establish the Hawaii procurement institute at the William S. Richardson School, University of Hawaii, and to make an appropriation for its operating expenses.

Your Committees received testimony in support of this measure from the Department of Accounting and General Services; William S. Richardson School of Law, University of Hawaii (UH); The Chamber of Commerce of Hawaii; and two individuals. Comments were submitted by the State Procurement Office.

Act 52, Session Laws of Hawaii 2003, established a Hawaii procurement institute (institute) under the administrator of the procurement office, to work cooperatively with the UH and private entities to promote and develop a professional acquisition workforce to improve and enhance the State's contractor industrial base through education and training. This measure would transfer the institute in its entirety to the William S. Richardson School of Law.

Your Committees find that the William S. Richardson School of Law is the most appropriate entity to house the institute, as modern day procurement practices and procedures of state, local, and federal governments are fraught with complexities of laws, rules, and forms. As aptly stated in testimony of The Chamber of Commerce of Hawaii, a procurement technical assistance center would be of enormous help to small businesses in securing bid contracts. Testimony of the William S. Richardson School of Law indicates that the institute "is a think tank for the development and analysis of Federal, State, and local procurement policies, laws, and regulations."

Your Committees intend that the institute become as independent as possible, and that the involvement of the Board of Regents be limited to approving the selection of the director of the institute.

Your Committees request the institute to gradually become financially self-supporting. The testimony provided by the William S. Richardson School of Law indicates that it anticipates having to receive state appropriations for two fiscal years beyond the next fiscal biennium, in an amount of $150,000 for fiscal year 2007 and $100,000 for fiscal year 2008. However, the William S. Richardson School of Law indicated it needed an appropriation of $200,000 in each year of the next fiscal biennium.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1038, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1038, S.D. 1, and be referred to the Committee on Ways and Means.