STAND. COM. REP. NO. 1069

Honolulu, Hawaii

, 2021

RE: S.B. No. 1391

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 Government Reform, to which was referred S.B. No. 1391, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to authorize the Procurement Policy Board to adopt and, as necessary, amend specific rules that require the consideration of life-cycle costs in all state procurements on or before December 31, 2021.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office and two individuals. Your Committee received testimony in opposition to this measure from the Department of Transportation. Your Committee received comments on this measure from the State Procurement Office.

Your Committee finds that although existing law encourages the consideration of ongoing life-cycle costs to promote energy efficiency, it neither requires nor effectively provides for full and effective accounting and consideration of life-cycle costs in procurement practices and procedures. Your Committee further finds that consideration of life-cycle costs in the procurement of goods, services, and construction is critical to ensure the sound economic management of the State's financial resources.

Your Committee has amended this measure by:

(1) Removing the deadline date of December 31, 2021, for when the Procurement Policy Board may adopt and amend rules that require the consideration of life-cycle costs in all state procurements;

(2) Changing its effective date to July 1, 2112, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Government Reform that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1391, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1391, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

ANGUS L.K. McKELVEY, Chair