STAND. COM. REP. NO. 3042

Honolulu, Hawaii

RE:    H.B. No. 347

       H.D. 2

       S.D. 2

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. 347, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to provide certain exemptions for the University of Hawaii or the Board of Regents of the University of Hawaii (collectively, the University) from the Hawaii Public Procurement Code, chapter 103D, Hawaii Revised Statutes, by:

     (1)  Increasing the small purchases ceiling in section 103D‑305, Hawaii Revised Statutes from $50,000 to $250,000;

     (2)  Requiring the University to implement an electronic procurement system for procurements of less than $25,000; and

     (3)  Exempting the University from bid protests and hearings provisions under sections 103D-701 and 103D-709, Hawaii Revised Statutes.

     Written comments in support of the measure were submitted by the University and one individual.  Written comments in opposition to the measure were submitted by the State Procurement Office and one private organization.  Written comments presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that the intent of this measure is to assist the University in implementing much needed deferred maintenance and capital renewal projects on all of their campuses more quickly, by shortening delays in the contracting and procurement process.  The University submitted testimony indicating that it has a deferred maintenance backlog in excess of $350,000,000, the projects for which are already identified, involve little in the way of permitting, and are ready to launch quickly, thus putting Hawaii's construction workers to work.

     Your Committee has amended this measure by:

     (1)  Deleting sections 1 and 4 of the measure, because Act 175, Session Laws of Hawaii 2009 (Act 175), has already temporarily increased the small purchases ceiling in section 103D-305, Hawaii Revised Statutes, from $50,000 to $100,000 for goods or services and $250,000 for construction procurements;

     (2)  Retaining the sunset date of July 1, 2012, for the measure, which will essentially institute a two-year pilot program;

     (3)  Inserting an effective date of July 1, 2050, to ensure further discussion; and

     (4)  Making technical, nonsubstantive changes for purposes of consistency and integration with the provisions of and amendments to the Hawaii Revised Statutes as enacted under Act 175.

     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. 347, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 347, H.D. 2, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair