STAND. COM. REP. NO. 2823

Honolulu, Hawaii

RE:    S.B. No. 2867

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2867, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE,"

begs leave to report as follows:

     The purpose of this measure is to provide that any false information or misrepresentation knowingly placed in a public procurement bid or a proposal shall be a basis for not awarding the bid or contract to that person, and to subject that person to a mandatory suspension from bidding on any contract for one year.

     Your Committee received testimony in support of this measure from the Department of Accounting and General Services and the State Procurement Office.

     Your Committee finds that this measure provides consequences to offerors who compromise the integrity of the State's procurement laws to gain the award of a bid or contract by knowingly attempting to deceive procurement officers through the provision of false information.

     Your Committee has amended this measure as follows by:

     (1)  Deleting sections 1 through 6;

     (2)  Inserting a section that amends section 103D-310, Hawaii Revised Statutes, relating to the responsibilities of offerors, to include language that embody the intent of the measure as received by the Committee but do so in a  unified manner;

     (3)  Replacing the term "affiliate" with "subcontractor", since rules adopted pursuant to chapter 103D, Hawaii Revised Statutes, include a definition for "subcontractor" that includes any person who enters into an agreement with the contractor to perform the work of the contractor; and

     (4)  Referencing section 103D-702, Hawaii Revised Statutes, relating to the chief procurement officer's authority to debar or suspend, as the applicable section to address debarment and suspension from bidding provisions.

     Your Committee has made these amendments based on the recommendation of the State Procurement Office to simplify the applicability of this measure's intent to all source selection methods of procurement.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2867, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2867, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

BRIAN T. TANIGUCHI, Chair