STAND. COM. REP. NO. 2961

Honolulu, Hawaii

RE:    H.B. No. 2283

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 2283, H.D. 2, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require all officers and employees of the State and each county who are conducting public procurement to do so in an ethical manner, as described in the measure; and

     (2)  Require that any person, including any actual or prospective bidder, offeror, contractor or business taking part in public procurement to act in good faith to practice purchasing ethics and to display business integrity, as described in the measure.

     Testimony in support of the measure was submitted by the Hawaii Procurement Institute.  Comments regarding the measure were submitted by the State Procurement Office and the Department of Accounting and General Services.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

     Your Committee finds that, although the current State Procurement Administrative Rules include an ethics provision in Hawaii Administrative Rules section 3-131-1.02, this measure is intended to strengthen and emphasize the State's commitment to ethical procurement practices.  Your Committee further finds that this measure is intended to enhance public confidence in the integrity of the procurement process.

     Your Committee has amended this measure by:

     (1)  Making changes to the measure for consistency with the existing ethics provision in Hawaii Administrative Rules section 3-131-1.02, as suggested by the State Procurement Office; and

     (2)  Inserting an effective date of September 14, 2047, to ensure further discussion regarding this measure.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2283, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2283, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair