Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2897, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to raise the small purchases ceiling under the Hawaii public procurement code from $25,000 to $50,000.

The measure also requires that small purchases be:

Your Committee finds that the measure brings the requirements of the State's procurement code in line with the reality of the costs of goods and services.

Your Committee has amended the measure by:

Your Committee finds that special purpose revenue bonds are issued to assist health care facilities, manufacturing enterprises, processing enterprises, industrial enterprises, energy projects, early childhood education and care facilities serving the general public, and private nonsectarian and sectarian elementary schools, secondary schools, colleges, and universities serving the general public.

Your Committee believes that the exemption from the procurement code is warranted since no public moneys are involved in the issuance of special purpose revenue bonds. In addition, even the fees and costs involved in the issuance of special purpose revenue bonds and the administration of loan programs are borne by the borrower. Vendors, if any, are hired and paid by the borrower. Should the State incur any costs whatsoever in the issuance of special purpose revenue bonds, the borrower is required to reimburse the State for all such amounts.

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. 2897, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2897, S.D. 2.