STAND. COM. REP. NO. 2414

Honolulu, Hawaii

RE: S.B. No. 2602

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Government Operations, 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:

(1) Require the State Procurement Policy Board to annually review and examine procurement contracts of at least two executive department, division, or agency contracts that are over $50,000; and

(2) Require the State Procurement Policy Board to randomly perform compliance examinations of government purchasing agencies and examinations of agencies selected based on a pattern of agency noncompliance.

Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from the State Procurement Office.

Your Committee finds that ensuring compliance with the state procurement code is essential for maintaining public confidence in government. Your Committee finds that one way to increase government accountability in the procurement process is for the State Procurement Policy Board to conduct annual and random reviews of government purchasing agencies. Your Committee further finds that the conduct of these types of reviews will allow the State Procurement Policy Board to more closely monitor agencies for compliance with the procurement code and serve as a means for consistently reviewing agencies' compliance with the code. Moreover, your Committee finds that these proposals will increase governmental compliance, efficiency, and transparency.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2602 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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DONNA MERCADO KIM, Chair