STAND. COM. REP. NO.  1208-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2825

      S.D. 1

      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 S.B. No. 2825, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to improve compliance with and administration of the procurement code by:

(1)  Allowing the Administrator of the State Procurement Office to determine the corrective actions to be taken by procurement officers;

(2)  Providing that procurement officers who fail to comply with the administrator's determination of corrective action within 30 days of issuance of the determination are subject to an administrative fine for each day of noncompliance; and

(2)  Making the Comptroller an ex-officio nonvoting member of the Procurement Policy Board.

     The State Procurement Office supported the intent of this bill.  The Department of Accounting and General Services submitted testimony in opposition.

     Your Committee believes that the Comptroller, as the only member of the Procurement Policy Board who represents the interests of the State, is a valuable voting member of the board.  Additionally, your Committee while recognizing that compliance with the procurement code is essential to a fair and open process for the disposition of public funds, questions the effectiveness of taking action against the procurement officer, personally.

     As such, your Committee has amended this measure by:

(1)  Deleting the section making the Comptroller an ex-officio nonvoting member of the Procurement Policy Board; and

(2)  Changing the 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 S.B. No. 2825, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2825, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary.

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

____________________________

KYLE T. YAMASHITA, Chair