STAND. COM. REP. NO.  407

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1470

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 1470 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to make it easier to use federal funds for state projects by allowing government agencies to contract with an offeror without complying with the bid, request for proposals, and professional services procedures of the procurement code when:

(1)  The procurement is funded by state and federal matching funds; and

(2)  The offeror is a United States General Services Administration-approved sole source vendor and is responsible for obtaining the federal funds.

     Hawaiya Technologies, Inc., testified in support of this measure.

     Your Committee heard testimony that Hawaii has been upgraded by the federal government from a "level 3" port to a "level 2" port, essentially making more federal dollars available for homeland security to shipping and other companies based at our ports.  However, there was also testimony that the Hawaii State Procurement Code makes it difficult for Hawaii to take advantage of these otherwise readily available federal dollars, by impeding government agencies from entering into contracts with offerors who have already been approved by the United States General Services Administration to receive federal matching funds as a sole source vendor.

     Your Committee believes this measure raises issues of extreme importance to the State.  Prompt action is needed to remove  impediments to the receipt of available federal funds, particularly in light of Hawaii's need to increase revenue sources and stimulate the economy.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1470 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

____________________________

ANGUS L.K. MCKELVEY, Chair