STAND. COM. REP. NO. 365

Honolulu, Hawaii

RE: S.B. No. 1207

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 1207 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) Authorize emergency procurements in situations such as equipment failure and repairs to public property that are necessary to protect against further loss or damage to public property, or to prevent or minimize serious disruptions in government services; and

(2) Remove the need for approval of the Chief Procurement Officer for these emergency procurements; provided that an accounting report is submitted to the Legislature within sixty days after the end of the fiscal year in which the emergency procurement was made.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services and Department of Transportation. Your Committee received comments on this measure from the State Procurement Office.

Your Committee finds that the proposed language of this measure aligns with and expands the current emergency procurement statute to include situations of an unusual or compelling urgency that, without the continued government service, would be a threat to life, public health, welfare, or safety. This measure also allows greater flexibility and efficiency for the appropriate department or agency to directly address the need, determine and perform appropriate action, and close out financial obligations to restore the conditions of the property or operation against further loss, damage, or serious disruptions in essential government services.

Your Committee has amended this measure by:

(1) Requiring the procuring agency to report to the Chief Procurement Officer regarding the emergency procurement in a timely manner; and

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

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. 1207, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1207, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

________________________________

SHARON MORIWAKI, Chair