STAND. COM. REP. NO. 2468

Honolulu, Hawaii

RE: S.B. No. 2831

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Government Operations and Higher Education, to which was referred S.B. No. 2831 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to reinstate the President of the University of Hawaii as the chief procurement officer for contracts for construction and construction related professional services furnished by licensees under chapter 464, Hawaii Revised Statutes.

Your Committees received testimony in support of this measure from the University of Hawai‘i System, State Procurement Office, and one individual. Your Committees received comments on this measure from one individual.

Your Committees find 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. Your Committees acknowledge the testimony of the University citing a State Procurement Office report indicating that the University is now engaging in some of what the Procurement Office refers to as "best-practices". Accordingly, your Committees find that the University, through the University President, should be given the opportunity to again be in control of its own procurement. However, your Committees find that it is prudent to create a shortened trial-period during which the University can fully demonstrate its commitment to its new policies and procedures designed to remedy the shortcomings which initially precipitated the transfer of procurement authority to the Department of Accounting and General Services. Your Committees also find that in order to maintain proper oversight over the University, the University should submit an annual report detailing capital improvement projects by the University.

Your Committees have amended this measure by:

(1) Requiring the University of Hawaii to submit an annual report to the Legislature detailing a list of all capital improvement projects approved by the Board of Regents prioritized by each campus;

(2) Inserting a repeal date of June 30, 2021; and

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

As affirmed by the records of votes of the members of your Committees on Government Operations and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2831, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2831, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Higher Education,

________________________________ KAIALI'I KAHELE, Chair

________________________________ DONNA MERCADO KIM, Chair