CONFERENCE COMMITTEE REP. NO. 197-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3369

S.D. 2

H.D. 2

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. 3369, S.D. 2, H.D. 2, 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) Establish a working group to develop a plan for the phased in consolidation of procurement services and staff within executive branch agencies over a five-year timespan, excluding the Department of Education, Hawaii Health Systems Corporation, University of Hawaii, and Office of Hawaiian Affairs;

(2) Require the working group to make recommendations for attracting high-quality procurement professionals to the State; and

(3) Appropriate funds to the State Procurement Office to support the activities of the working group.

Your Committee on Conference finds that procurement activities in the State may not be in strict compliance with applicable law. Your Committee on Conference further finds that few executive branch departments have dedicated procurement personnel. This can lead to mistakes that result in increased costs to the government. Accordingly, this measure promotes competency and expertise, efficiency, and transparency in the public procurement process by establishing a working group to study and develop a responsible plan for the phased consolidation of certain executive branch procurement services and staff.

Your Committee on Conference has amended this measure by:

(1) Removing the exemption of the Department of Education from the consolidation plan;

(2) Clarifying the composition and duties of the working group;

(3) Inserting an appropriation amount of $250,000 and clarifying the allowable uses of the appropriated funds;

(4) Amending section 1 to reflect its amended purpose; and

(5) Inserting an effective date of July 1, 2022.

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. 3369, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3369, S.D. 2, H.D. 2, 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	____________________________ GLENN WAKAI Co-Chair
____________________________ TINA WILDBERGER Co-Chair