STAND. COM. REP. NO.  1207-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2826

      S.D. 2

      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. 2826, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

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

(1)  Transferring responsibility for developing and conducting training for procurement officers from the Department of Human Resources Development to the State Procurement Office; and

(2)  Making training mandatory for all state procurement officers, but elective for county procurement officers.

This bill also makes the Comptroller an ex-officio nonvoting member of the Procurement Policy Board.

     The Department of Accounting and General Services opposed this bill.  The State Procurement Office offered comments.

     The Comptroller is the only member of the Procurement Policy Board who represents the State.  Thus, removing the Comptroller's vote may be detrimental to the State's interests in the establishment and implementation of procurement policy.

     Your Committee notes that if attendance at procurement training were to become mandatory for all state procurement officers there would be an increased need for training resources.  Your Committee also understands that responsibility for procurement activities is decentralized, and that it would be unusual for any one person to be involved in all the potential types of procurements covered by the procurement code.  Accordingly, your Committee has amended this bill by:

     (1)  Providing that the Procurement Policy Board is to determine under what conditions procurement training is to be mandatory;

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

     (3)  Changing the effective date to July 1, 2034, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 2826, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2826, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

KYLE T. YAMASHITA, Chair