CONFERENCE COMMITTEE REP. NO. 46-08

Honolulu, Hawaii

                 , 2008

RE:    S.B. No. 2825

       S.D. 1

       H.D. 2

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2825, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is:

(1)  Allow the Administrator of the State Procurement Office to determine the corrective actions; and

(2)  Specify that procurement officers who fail to comply with the Administrator's determination of corrective action within thirty days of issuance of the determination, or longer if permitted by the Administrator, are subject to an administrative fine for each day of noncompliance.

     Your Committee on Conference finds that governmental bodies are culpable at times for procurements that are not in compliance with law.  The Hawaii Public Procurement Code provides general authority to the Chief Procurement Officer to assess fines.  This measure clarifies that the Administrator of the State Procurement Office may assess fines in those instances against governmental bodies, including public employees, as well as to make determinations as to corrective actions.

     Your Committee on Conference has amended this measure by changing the effective date to January 1, 2009, and making technical nonsubstantive amendments.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2825, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2825, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ KYLE T. YAMASHITA, Co-Chair	____________________________ CLARENCE K. NISHIHARA, Chair
____________________________ BLAKE K. OSHIRO, Co-Chair	____________________________ SHAN S. TSUTSUI, Co-Chair