Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 1127 entitled:

begs leave to report as follows:

The purpose of this measure is to delete the requirement that small purchase contracts require offerors to produce documents to the procurement officer to prove that they are incorporated or organized under, or registered to do business in, the State, and comply with business regulations.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services (DAGS), Department of Budget and Finance, Hawaii County, Honolulu Department of Budget and Fiscal Services, and Kauai Water Department. Comments were received from the State Procurement Office (SPO).

This measure reduces the administrative burden on state and county agencies by eliminating the need to verify vendor and contractor compliance in procurement procedures for purchases less than $25,000.

Your Committee has amended this measure on the recommendation of DAGS and SPO by repealing references to incorporation, registration, and organization under Hawaii law as being unnecessary if the other requirements under the law are met.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1127, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1127, S.D. 1, and be referred to the Committee on Ways and Means.