STAND. COM. REP. NO.  912-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2053

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2053 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to establish a special innovative procurement process to:

     (1)  Provide the State with greater flexibility in the procurement of certain goods and services to meet unique or unusual needs or situations while maintaining the accountability and transparency afforded by the State Procurement Code; and

     (2)  Be used only when the Chief Procurement Officer determines in writing that it is advantageous to procure new or unique requirements of the State, new technologies, public-private partnerships, or achieve best value.

The State Procurement Office, Department of Accounting and General Services, Department of Agriculture, Ulupono Initiative, Local Food Coalition, Chamber of Commerce of Hawaii, Hawaii Farm Bureau Federation, and Hawaii Green Growth testified in support of this measure.  The American Council of Engineering Companies of Hawaii testified in opposition to this measure.  The Department of Transportation, Painters Labor Management Cooperation Trust Fund, Hawaii Tapers Market Recovery Trust Fund, Hawaii Glaziers, Architectural Metal, Glassworkers Local Union 1889 AFL-CIO Stabilization Trust Fund, and Carpet, Linoleum, and Soft Tile Local Union 1926 Market Recovery Trust Fund provided comments.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2030, to facilitate 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2053, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2053, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair