STAND. COM. REP. NO. 697

Honolulu, Hawaii

, 2019

RE: H.B. No. 1582

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1582 entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS ON PUBLIC PROPERTY,"

begs leave to report as follows:

The purpose of this measure, as received by your Committee, is to amend the requirements for the awarding of concession contracts on public property by:

(1) Allowing proposals to be submitted for concessions on public property;

(2) Establishing criteria for the acceptance and awarding of proposals for concessions on public property;

(3) Specifying advertising requirements for bids and proposals and allowing for online advertising;

(4) Requiring that concession contracts be awarded by a procurement officer based on the rankings of a committee to review and evaluate proposals from offerors; and

(5) Requiring that all persons involved in the review, evaluation, or awarding of concession contracts adhere to all requirements of ethical public procurement under the Hawaii Public Procurement Code.

For purposes of facilitating public input on a proposed H.D. 1 version of this measure, your Committee circulated H.B. No. 1582, H.D. 1, Proposed, prior to holding a public hearing, which was held on February 14, 2019, on this measure.

Your Committee received the following testimony on H.B. No. 1582, H.D. 1, Proposed: The Airport Concessionaires Committee testified in support of this measure. An individual opposed this measure.

After careful consideration, your Committee has amended this measure by:

(1) Deleting its contents and inserting the language of H.B. No. 1582, H.D. 1, Proposed, which exempts from the bidding requirements of Chapter 102, Hawaii Revised Statutes (HRS), concessions on public property whose operations provide historical and cultural information, goods, and services within the State Capitol District; and

(2) Making an additional amendment to change the effective date of the measure to January 1, 2050, to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1582, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1582, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair