STAND. COM. REP. NO.  53-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 1671

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 1671 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to make changes to the procurement process by imposing time limits on rendering administrative and judicial review decisions, limiting protests to be heard by a hearings officer to those protests that amount to a minimum percentage of the contract value, and to require the posting of a protest bond which will be forfeited if the protesting party does not prevail.

     Additionally, this measure requires the State Procurement Office to keep statistics on protested solicitations and awards.

The Chamber of Commerce of Hawaii and the General Contractors of Hawaii testified in support of this measure.  The State Procurement Office testified in support of this measure with amendments.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2112, to encourage further discussion; and

     (2)  Making technical nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1671, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1671, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ANGUS L.K. McKELVEY, Chair