STAND. COM. REP. NO. 727

Honolulu, Hawaii

RE:    S.B. No. 1929

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1929, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

begs leave to report as follows:

     The purpose of this measure is to allow the Chief Procurement Officer to assess administrative fines for noncompliance with the Hawaii Public Procurement Code.

     The measure further provides that the amount of the fine shall be set by rules adopted by the State Procurement Policy Board.

     The State Procurement Office submitted comments in support of this measure.  The Department of Accounting and General Services submitted comments on this measure. 

     Your Committee finds that the existing law is lacking in a provision for administrative fines for noncompliance with procurement laws.  Although criminal penalties exist, there are no administrative sanctions for those whose actions fall short of criminal prosecution.  The measure will help to ensure compliance with the procurement code.

     Your Committee has amended this measure by:

     (1)  Clarifying that an administrative fine may be levied against a person after the person has been found to have violated the procurement laws; and,

     (2)  Making technical non-substantive amendments for clarity and 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. 1929, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1929, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair