STAND. COM. REP. NO.  689

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1767

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 1767 entitled:

"A BILL FOR AN ACT RELATING TO THE PROCUREMENT CODE,"

begs leave to report as follows:

The purpose of this bill is to ensure that the selection of contractors for public construction projects over $250,000 or planning or studies exceeding $25,000 provides the State with the best value, by establishing a new procurement procedure for design-build contracts that is similar to the professional services procurement process and allows consideration of the contractors' history of performance, adequacy of personnel, past record, experience and other factors.

The Hawaii Building and Construction Trades Council, AFL-CIO and a concerned individual supported this bill.  The State Procurement Office and Department of Accounting and General Services opposed the bill.

     Your Committee received a proposed draft of this bill on the evening before the morning's decision making on the bill.  Lacking sufficient time to adequately review the draft, your Committee respectfully requests the Committee on Finance to examine the proposal.  Your Committee has amended this bill by changing its effective date to July 1, 2034, to allow further examination and discussion of the measure.

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1767, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1767, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair