STAND. COM. REP. NO. 577

Honolulu, Hawaii

RE:    S.B. No. 705

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred S.B. No. 705 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to provide a procurement exemption for General Services Administration approved sole source vendors involving matching federal funds, if the sole source vendor was responsible for obtaining the federal funding for the project.

     Your Committee finds that this measure is narrowly drafted to address procurements that may be useful to the State, such as homeland security projects that may benefit the protection of Hawaii harbors.

     Your Committee has amended this measure by:

     (1)  Raising the small purchases limit from $50,000 to $100,000 for procurements of goods and services, pursuant to chapter 103D, Hawaii Revised Statutes;

     (2)  Requiring that construction contracts of less than $250,000 be treated as small purchases and be subject to specified bonding requirements; and

     (3)  Changing the effective date to July 1, 2050 and repealing the measure on July 1, 2011, to encourage continued discussions on this matter.

     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 S.B. No. 705, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 705, 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