STAND. COM. REP. NO. 2701

Honolulu, Hawaii

RE:    S.B. No. 2493

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2493, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to ensure that executive agencies of the State comply with the Hawaii Public Procurement Code, chapter 103D, Hawaii Revised Statutes.

     More specifically, this measure requires the State Procurement Policy Board to:

     (1)  Annually review and examine procurement contracts over $50,000 of at least two executive departments, divisions, or agencies, selected pursuant to certain criteria;

     (2)  Perform compliance examinations of any department, division, or agency, selected randomly or as otherwise provided by law; and

     (3)  Report the results of all compliance examinations to the Legislature no later than twenty days prior to the convening of each regular session.

     Your Committee received written comments in opposition to this measure from the Department of Budget and Fiscal Services of the City and County of Honolulu and one individual.

     Your Committee received written comments on this measure from the State Procurement Office.

     Your Committee finds that, in order to more readily ensure compliance with the public procurement code, the State Procurement Office must take further steps to ensure that executive agencies of the State comply with the procurement policies and procedures established pursuant to chapter 103D, Hawaii Revised Statutes.  Accordingly, your Committee finds that the additional oversight and review provided by this measure will help to ensure that public contracts are being properly awarded.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2493, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2493, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair