STAND. COM. REP. NO. 2712

Honolulu, Hawaii

RE: S.B. No. 2602

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2602 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 compliance with the State Procurement Code by executive departments, divisions, and agencies.

Specifically, this measure requires the State Procurement Policy Board to annually review and examine procurement contracts that are over $50,000 of a minimum of two executive departments, divisions, or agencies.

Your Committee did not receive any written comments on this measure.

Your Committee finds that ensuring compliance with the State Procurement Code is essential to maintain public confidence in government. Your Committee further finds that the compliance examinations required by this measure will increase governmental compliance, efficiency, and transparency.

Your Committee has amended this measure by:

(1) Clarifying that the State Procurement Policy Board shall prioritize the review of departments, divisions, or agencies based upon a pattern of noncompliance or based upon circumstances that may indicate an intent to circumvent the State Procurement Code;

(2) Clarifying that in addition to the departments, divisions, or agencies prioritized by this measure, the State Procurement Policy Board shall also select any department, division, or agency for a compliance examination, provided that the selection may be random or as otherwise authorized by law;

(3) Changing the effective date to January 1, 2050, to facilitate further discussion on the measure; and

(4) Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

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. 2602, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2602, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair