Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2997, S.D. 1, H.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to provide exemptions from the Hawaii public procurement code for the Hawaii Strategic Development Corporation, Natural Energy Laboratory of Hawaii Authority, and High Technology Development Corporation, as well as to exempt purchases of services from contractors contracted by a legislative agency for he purpose of preparing a report to the Legislature.

Act 216, Session Laws of Hawaii 2004, repealed the procurement code exemptions for the Hawaii Strategic Development Corporation, Natural Energy Laboratory of Hawaii Authority, and High Technology Development Corporation. Your Committee finds that these entities need to have the administrative flexibility in a highly technical and volatile investment environment to enable them to make procurements in an efficient and expeditious manner.

Your Committee further finds that legislative agencies that contract for services to perform studies pursuant to an Act or concurrent resolution should similarly be exempt from the Hawaii public procurement code. These studies entail specialized area of knowledge, and there are usually a limited number of qualified contractors with the expertise to perform such studies.

Your Committee has amended this measure by changing the effective date to upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2997, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2997, S.D. 1, H.D. 1, C.D. 1.