STAND. COM. REP. NO. 310

Honolulu, Hawaii

RE:    S.B. No. 149

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Government Operations, Human Services, and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 149 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Repeal the requirement that all applicants for procurement contracts for health and human services possess all licenses necessary to conduct the subject business; and

     (2)  Repeal the requirement that all contracts for health and human services include only costs, fees, and taxes reflected on the face of the proposal.

     Your Committees received testimony in support of this measure from the Department of Human Services, State Procurement Office, and Department of Health.  Your Committees received testimony in opposition to this measure from one individual.

     Your Committees find that the original intent of this law is no longer being served because its implementation has resulted in an overly restricted fair marketplace which has chilled healthy business competition amongst qualified health and human services providers.  Thus, your Committees feel that the repeal of this law is necessary for the efficient processing of contracts for health and human services.

     As affirmed by the records of votes of the members of your Committees on Government Operations, Human Services, and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 149 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations, Human Services, and Commerce, Consumer Protection, and Health,

________________________________ JOSH GREEN, Chair	________________________________ DONNA MERCADO KIM, Chair
	________________________________ ROSALYN H. BAKER, Chair