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. 2898, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a Chief Procurement Officer position for the Hawaii Health Systems Corporation.

Your Committee finds that Act 216, Session Laws of Hawaii 2004, repealed the Hawaii Health Systems Corporation's exemption from the requirements of the State's Procurement Code, chapter 103D, Hawaii Revised Statutes. Due to inherent transitional difficulties experienced after the repeal of the Hawaii Health Systems Corporation's procurement exemption, incidents of delayed procurement or no procurement of essential medical supplies and equipment occurred. Your Committee is concerned that such occurrences could jeopardize patient care and safety. Consequently, your Committee believes that providing the Hawaii Health Systems Corporation with its own Chief Procurement Officer could reduce procurement delays.

Your Committee has amended the measure by making technical nonsubstantive amendments for the purpose of style.

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. 2898, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2898, S.D. 2.