STAND. COM. REP. NO.  472-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2094

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 2094 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to increase fairness and transparency in the solicitation and expenditure of funds by the State, by requiring that private funds solicited by a government body to cover the costs of a state-sponsored trip or other endeavor to generate business opportunities and goodwill shall be deposited into the general fund and disbursed by legislative appropriation.

     Your Committee received testimony in opposition from the Department of Accounting and General Services, the Department of Business, Economic Development, and Tourism, and the High Technology Development Corporation.

     Testimony indicates that the appropriation process in this bill may deter potential contributors, and the $50,000 this bill appropriates to replace solicited private funds may be insufficient and negatively affect state-sponsored trade missions.  However, your Committee also recognizes that there must be some oversight over the solicitation of funds for these trips.  A balance needs to be struck between fairness and transparency in State procurement activities and the effectiveness of the State's trade missions.

     Your Committee respectfully requests that the Committee on Finance to which this bill is next referred, confer with the Department of Business, Economic Development, and Tourism to determine an appropriate amount to be appropriated.

     Your Committee has amended this bill by changing its effective date to July 1, 2034, to encourage further discussion.

     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. 2094, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2094, 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