STAND

STAND. COM. REP. NO. 1683-06

Honolulu, Hawaii

, 2006

RE: S.B. No. 2997

S.D. 1

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2997, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this bill is to enable the following entities to better carry out their responsibilities by exempting them from the requirements of the Hawaii Public Procurement Code (Code):

(1) The services of contractors under contract with a governmental body to prepare a study or report for the Legislature;

(2) The Hawaii Strategic Development Corporation (HSDC);

(3) The Natural Energy Laboratory of Hawaii Authority (NELHA); and

(4) The High Technology Development Corporation (HTDC).

HSDC and HTDC testified in support of this bill. The Legislative Reference Bureau supported the provisions relating to the exemption of contractors who prepare studies and reports for the Legislature. The University of Hawaii also supported this bill with amendments. The Department of Accounting and General Services, State Procurement Office, and American Council of Engineering Companies of Hawaii opposed this measure.

Your Committee has amended this bill by:

(1) Limiting the exemption for those preparing studies or reports for the Legislature to contractors under contract with a legislative agency instead of a governmental body;

(2) Changing the effective date to July 1, 2020, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for consistency, clarity, and style.

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

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT TAKAMINE, Chair