Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Business and Economic Development and Tourism, to which was referred S.C.R. No. 32 entitled:

beg leave to report as follows:

The purpose of this measure is to request the Attorney General to investigate possible procurement code violations committed by the Department of Business, Economic Development, and Tourism.

Your Committees received comments from the Department of Business, Economic Development, and Tourism, the Pacific Asian Affairs Council, and the Hawaii District Export Council (DEC).

Your Committees are concerned that the Department of Business, Economic Development, and Tourism may have violated state procurement laws when the department selected a nonprofit organization to handle the finances for the Governor's trade mission to China and Korea in 2005. Your Committees find that the State Procurement Office and the State Ethics Commission are the proper authorities to review this matter.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Business and Economic Development and Tourism that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 32, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 32, S.D. 1.