STAND. COM. REP. NO. 2177

Honolulu, Hawaii

RE:    S.B. No. 2826

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Tourism and Government Operations, to which was referred S.B. No. 2826 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this measure is to transfer responsibilities for procurement training and development from the Department of Human Resources Development to the State Procurement Office, and to require mandatory attendance at the program sessions for procurement officers of the State and counties.

     Your Committee received testimony in support of this measure from the State Procurement Office; H2 Technologies, Inc.; Hawaii Angels; Global Education Trust; Archinoetics, LLC; Hawaii Venture Capital Association; Produced By You.com, LLC; PacifiCap Group; and one individual.

     Under this measure, the Department of Human Resources Development will cooperate with the State Procurement Office to develop and maintain a procurement practices training and development program for procurement officers of the State and the several counties.

     Your Committee finds that the State Procurement Office is the more appropriate agency rather than the Department of Human Resources Development to conduct procurement training.  Your Committee is concerned that procurement irregularities may be occurring without coming to the attention of the State Procurement Office.

     The intent of this measure is to ensure compliance with procurement procedures and practices and making proper procurement decisions consistent with the Hawaii public procurement code.

     Your Committee has amended this measure by:

     (1)  Making clarifying amendments on the recommendation of the State Procurement Office; and

     (2)  Inserting a provision to make the Comptroller an ex‑officio nonvoting member of the State Procurement Office.

     As affirmed by the record of votes of the members of your Committee on Tourism and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2826, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2826, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and Government Operations,

____________________________

CLARENCE K. NISHIHARA, Chair