STAND. COM. REP. NO. 2963

Honolulu, Hawaii

RE:    H.B. No. 2265

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred H.B. No. 2265, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE PROCUREMENT CODE,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend the sunset provisions of Act 175, Session Laws of Hawaii 2009 (Act 175), relating to the Hawaii Public Procurement Code, to make permanent:

     (1)  The small purchases threshold of $100,000 for goods or $250,000 for construction and to require performance bond security for construction projects greater than $50,000; and

     (2)  Provisions relating to keeping statistics on protested procurement solicitations and awards, procedures for administrative review proceedings including the forty-five day limit to issue a written decision, and procedures for judicial review including a thirty-day limit for the circuit court to issue a decision. 

     Your Committee received testimony in support of this measure from the Department of Transportation; City and County of Honolulu Department of Budget and Fiscal Services; Kauai Department of Finance; Subcontractors Association of Hawaii; Sheet Metal Contractors Association; and Electrical Contractors Association of Hawaii.  Comments were received from the Hawaii Building and Construction Trades Council, AFL-CIO.

     Your Committee finds that certain sections of Act 175 need to be made permanent for the sake of allowing more expeditious execution of procurements, especially procurements funded in part by federal stimulus funding.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to allow for further discussion; and

     (2)  Making technical, nonsubstantive changes for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2265, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2265, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

____________________________

WILL ESPERO, Chair