STAND. COM. REP. NO.  43-16

 

Honolulu, Hawaii

                , 2016

 

RE:   H.B. No. 2053

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development & Business, 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 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.

 

     The Department of Agriculture, Building Industry Association of Hawaii, Hawaii Food Policy Council, Ulupono Initiative, Local Food Coalition, Chamber of Commerce of Hawaii, Hawaii Cattlemen's Council, Inc., Hawaii Farm Bureau Federation, and a concerned individual testified in support of this measure.  The State Procurement Office and Department of Transportation testified in support of the intent of this bill.  The American Council of Engineering Companies provided comments.

 

Currently, when unique or unusual circumstances arise in the public procurement process, the State lacks the flexibility in the Hawaii Public Procurement Code to respond in an effective, efficient, and timely manner.  According to the State Procurement Office, exemptions from the Code are provided in many of these instances, which has resulted in millions of dollars of goods and services being procured with minimal accountability.  The creation of a new process for the procurement of goods and services in these situations will provide the State with the flexibility it needs to balance the reality of an ever changing marketplace with the guiding principles of government contracting and the State's responsibility to the public.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2053 and recommends that it pass Second Reading and be referred to your Committee on Finance.

 

 

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

 

 

 

 

____________________________

DEREK S.K. KAWAKAMI, Chair