STAND. COM. REP. NO.  567-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2133

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2133, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to improve efficiency within the government procurement process by:

     (1)  Amending the Hawaii Public Procurement Code to:

          (A)  Set time limits for awards in the request for   proposal process;

          (B)  Make public contracts effective as of 10 days after the notice of the award;

          (C)  Specify that the solicitation, offer, bid, or   proposal and the notice of award constitute the    entire contract and agreement between the   governmental body and the contractor; and

          (D)  Provide that a subsequent written and executed contract is not required;

     (2)  Requiring the State Procurement Office (SPO) to authorize reseller agreements in multi-state contracting agreements; and

     (3)  Requiring the Procurement Policy Board to adopt rules to promote small businesses in Hawaii including a five percent price preference.

     The General Contractors Association testified in support of this bill.  The Board of Water Supply of the City and County of Honolulu opposed this measure.  The SPO and Department of Accounting and General Services provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2133, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair