CONFERENCE COMMITTEE REP. NO. 193-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3040

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3040, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Create a State Procurement Automation System Special Fund;

(2) Authorize the Administrator of the State Procurement Office to develop and administer procurement automation systems and charge and collect a transaction fee from all vendors using the procurement automation systems;

(3) Delete language regarding qualified community rehabilitation programs made redundant by Act 55, Session Laws of Hawaii 2021; and

(4) Establish five full-time equivalent positions in the State Procurement Office.

Your Committee on Conference finds that the State Procurement Office seeks to transition to an online procurement automation system to align with industry standards. Your Committee on Conference further finds that establishing procurement automation systems in Hawaii will maximize the administrative efficiency and resources of the State Procurement Office. Your Committee on Conference also finds that funding for additional positions will aid in the management of procurement automation systems. Accordingly, this measure will improve procurement in Hawaii by authorizing the establishment of procurement automation systems.

Your Committee on Conference has amended this measure by:

(1) Removing the establishment of the State Procurement Automation System Special Fund;

(2) Inserting language to allow the State Procurement Office to plan and develop methods to assess, charge, and collect a transaction fee;

(3) Deleting language authorizing the assessment of transaction fees;

(4) Inserting an appropriation amount of $150,000;

(5) Reducing the number of positions established from four to two and clarifying the responsibilities of those positions;

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

(7) Inserting an effective date of July 1, 2022; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3040, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3040, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ANGUS L.K. MCKELVEY Co-Chair	____________________________ SHARON MORIWAKI Chair
____________________________ AARON LING JOHANSON Co-Chair	____________________________ BENNETTE MISALUCHA Co-Chair
____________________________ TINA WILDBERGER Co-Chair