STAND. COM. REP. NO. 2609

Honolulu, Hawaii

RE:    S.B. No. 2494

       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. 2494, 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 improve the efficiency and transparency of government contracting.

     More specifically, this measure:

     (1)  Requires the State Procurement Office to establish a statewide database containing government procurement contract data;

     (2)  Requires each governmental body to submit data relating to any procurement contract of the governmental body to the State Procurement Office; and

     (3)  Appropriates moneys to establish the statewide database.

     Your Committee received written comments on this measure from the City and County of Honolulu Department of Budget and Fiscal Services.

     Your Committee finds that government procurements are inconsistently solicited and that there is a wide range of expectations pertaining to vendor proposals, both of which contribute to increased procurement processing time and decreased efficiency.  Your Committee further finds that establishing a statewide database of all government procurement contracts will reduce inconsistencies for contracting practices and improve the efficiency, transparency, and accountability of government contracting.

     Your Committee notes that $100,000 is needed for the State Procurement Office to establish the statewide procurement database.  Your Committee also notes that as this measure moves through the legislative process, consideration should be given to the resources and time that will be necessary for governmental bodies to comply with the requirements established in this measure.

     Your Committee has amended this measure by changing the:

     (1)  Appropriation amount to an unspecified sum; and

     (2)  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. 2494, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2494, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair