STAND. COM. REP. NO. 1505

Honolulu, Hawaii

, 2021

RE: S.B. No. 1035

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1035, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the State Procurement Automation System Special Fund to fund the project management of the procurement automation system;

(2) Allow the State Procurement Administrator to establish procedures for issuing the final decision on any procurement practice, procurement policy and procedures, and compliance investigations conducted by the State Procurement Office; and

(3) Authorize the Administrator to assess and collect an administrative fee to be deposited into the State Procurement Automation System Special Fund to cover the costs of the procurement automation system.

Your Committee received testimony in support of this measure from the State Procurement Office. Your Committee received comments on this measure from the Subcontractors Association of Hawaii and Plumbing and Mechanical Contractors Association of Hawaii.

Your Committee finds that the State Procurement Office is seeking to transition its manual procurement processes to an online digital system. Your Committee further finds that the establishment of a procurement automation system across the executive branch and state agencies, like the one proposed by this measure, will increase efficiencies and responsiveness; support consistent and standardized procurement practices and processes, policies, and procedures; and provide greater confidence to taxpayers by ensuring optimal compliance and transparency in following the Hawaii Public Procurement Code.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1035, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair