CONFERENCE COMMITTEE REP. NO. 60-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3372

S.D. 1

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. 3372, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC 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 authorize the Office of Administrative Hearings, where it is determined that an award of a contract is in violation of law and the award is rescinded and the contract, if executed, is terminated or declared null and void, to award the government contract to the next lowest bidder or next responsible offeror, if certain conditions are met.

Your Committee on Conference finds that existing law lacks a statutory procedure to address to whom a contract may be awarded when it is determined that a solicitation or award of a contract violates the law.  As a result, under these circumstances, the only remedy available to the Office of Administrative Hearings is to terminate the contract and begin the procurement process anew. Your Committee on Conference further finds that contract termination and re-solicitation delays the procurement process.  Accordingly, this measure ensures fairness while minimizing delays in the procurement process by expanding the remedial powers of the Office of Administrative Hearings in situations where an award of a contract is determined to violate the law.

Your Committee on Conference has amended this measure by:

(1) Clarifying that the alternate award recipient is the next lowest responsible and responsive bidder or offeror; and

(2) 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. 3372, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3372, S.D. 1, 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	____________________________ DONNA MERCADO KIM Co-Chair
____________________________ TINA WILDBERGER Co-Chair