STAND. COM. REP. NO. 2475

Honolulu, Hawaii

RE:    S.B. No. 2108

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Human Services and Public Housing and Tourism and Government Operations, to which was referred S.B. No. 2108 entitled:

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

beg leave to report as follows:

     The purpose of this measure is to establish a procurement preference for bidders who employ persons with disabilities or recipients of income payments under public assistance programs.

     Testimony in support of this measure was submitted by the Department of Human Services, the Department of Accounting and General Services, the State Rehabilitation Council, the Hawaii Disability Rights Center, and one private citizen.  Comments on the measure were submitted by the State Procurement Office.  Oral testimony in support of the measure was given by Lanakila Rehabilitation Center.

     Your Committees find that the unemployment rate in the State is approximately three per cent, compared with the unemployment rate for individuals with disabilities in the State, which is roughly sixty-two per cent.  Your Committees further find that this measure provides needed assistance to individuals with disabilities and recipients of Temporary Assistance for Needy Families, populations that can experience particular difficulties in obtaining jobs, achieve gainful employment.

     Accordingly, your Committees have amended this measure by:

     (1)  Incorporating the comments of the Department of Human Services by specifying that a procurement preference is being established for recipients of Temporary Assistance for Needy Families, rather than for recipients of public assistance generally, and by inserting an appropriation to the Department of Human Services to maintain registries of individuals with disabilities and recipients of Temporary Assistance for Needy Families for employment purposes;

     (2)  Incorporating the comments of the Department of Accounting and General Services (DAGS) by placing a $500,000 cap on qualifying construction contracts, and by requiring DAGS to submit an annual report to the Legislature on the procurement preferences; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the records of votes of the members of your Committees on Human Services and Public Housing and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2108, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2108, S.D. 1, and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committees on Human Services and Public Housing and Tourism and Government Operations,

____________________________ CLARENCE K. NISHIHARA, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair