STAND. COM. REP. NO. 3203

Honolulu, Hawaii

RE: S.B. No. 2383

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2383, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE PROCUREMENT POLICY BOARD,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the process for appointing the Administrator of the State Procurement Office;

(2) Transfer the authority and responsibility of the State Procurement Policy Board to the Administrator of the State Procurement Office; and

(3) Repeal the Procurement Policy Board Nominating Committee and the State Procurement Policy Board.

Your Committee received testimony in support of this measure from the State Procurement Office. Your Committee received testimony in opposition to this measure from the Department of Budget and Fiscal Services of the City and County of Honolulu, UNITE HERE Local 5 Hawaii, and Hawai‘i Alliance of Nonprofit Organizations.

Your Committee finds that the State Procurement Policy Board is one example where vacancies have hampered state processes. Unfortunately, because of vacancies on the Board, the Board has had challenges conducting its business and vital tasks are left pending. This measure will change the appointment process for the Board, which will increase efficiency in government and facilitate the procurement process in the State.

Your Committee has amended this measure by:

(1) Restoring language that would have repealed the State Procurement Policy Board;

(2) Removing language that would have transferred the authority and responsibility of the State Procurement Policy Board to the Administrator of the State Procurement Office;

(3) Removing language that would have amended the appointment process of the Administrator of the State Procurement Office;

(4) Specifying that the Governor shall appoint four members to the State Procurement Policy Board;

(5) Specifying that the President of the Senate shall appoint one member to the State Procurement Policy Board;

(6) Specifying that the Speaker of the House of Representatives shall appoint one member to the State Procurement Policy Board;

(7) Repealing the Procurement Policy Board Nominating Committee;

(8) Amending section 1 to reflect its amended purpose;

(9) Inserting an effective date of July 30, 2075, to encourage further discussion; and

    (10) 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 Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2383, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2383, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair