STAND. COM. REP. NO.  1347

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 718

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Agriculture and Economic Development & Business Concerns, to which was referred S.B. No. 718, S.D. 2, entitled:

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

beg leave to report as follows:

     The purpose of this bill is to encourage the purchase and use of Hawaii agricultural products by:

     (1)  Requiring the State Procurement Office (SPO), with the assistance of the Department of Agriculture (DOA), to develop a Hawaii agricultural product program that requires purchasing agents of food operations at state correctional facilities and state hospitals and healthcare facilities to:

          (A)  Apply a preference for the purchase of agricultural products raised or grown in Hawaii before purchasing products not raised or grown in Hawaii; and

          (B)  Set goals to increase, in increments, the purchase of Hawaii agricultural products;

          and

     (2)  Requiring DOA, with the assistance of SPO, to develop a Hawaii floriculture product program.

     DOA, Department of Accounting and General Services, Hawaii Teamsters Local 996, Hawaii Farm Bureau Federation, and Maui County Farm Bureau supported this bill.  The Hawaii Agriculture Research Center supported the intent of this measure.

     Your Committees find that concerns were raised regarding the provision establishing a Hawaii floriculture product program that is distinct from the Hawaii agricultural product program.  Testimony submitted during the public hearing indicated that this may result in possible confusion and duplication of services since the definition of "Hawaii agricultural products" used for the Hawaii agricultural product program already includes floricultural products. 

     Therefore, your Committees have amended this measure by:

     (1)  Deleting the provision requiring DOA, with SPO assistance, to develop a Hawaii floriculture product program; and

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

     As affirmed by the records of votes of the members of your Committees on Agriculture and Economic Development & Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 718, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 718, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Economic Development & Business Concerns,

____________________________ KYLE T. YAMASHITA, Chair

____________________________ CLIFT TSUJI, Chair