CONFERENCE COMMITTEE REP. NO. 161-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2831

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2831, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT FOR THE UNIVERSITY OF HAWAII,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Restore until June 30, 2021, authority to the University of Hawaii President to act as the University of Hawaii Chief Procurement Officer for contracts for construction and construction-related professional services; and

(2) Require the University of Hawaii to submit an annual report to the Legislature prior to the convening of each regular session through 2021, that details a list of all capital improvement projects approved by the Board of Regents.

Your Committee on Conference finds that procurement for contracts for construction and construction-related professional services furnished by licensees under chapter 464, Hawaii Revised Statutes, for the University of Hawaii has been under the control of the Department of Accounting and General Services for the past five years after issues were discovered relating to the University's procurement process and procedures. During that time, the University has made significant changes to its policies and procedures including engaging in some of what the State Procurement Office refers to as "best-practices". Accordingly, your Committee on Conference finds a trial-period should be established during which the University, through the University President, should be given the opportunity to again be in control of its own procurement. Your Committee on Conference also finds that in order to maintain proper oversight over the University, the University should submit an annual report to the Legislature detailing its capital improvement projects.

Your Committee on Conference has amended this measure by changing the effective date to upon approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2831, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2831, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ AARON LING JOHANSON Co-Chair	____________________________ DONNA MERCADO KIM Chair
____________________________ ANGUS L.K. MCKELVEY Co-Chair	____________________________ KAIALI'I KAHELE Co-Chair
____________________________ DANIEL HOLT Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair