STAND. COM. REP. NO. 992

Honolulu, Hawaii

, 2025

RE: H.B. No. 1155

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1155 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to exempt from the Hawaii Public Procurement Code contracts by government bodies to procure construction projects for which procurement by competitive means is either not practicable or not advantageous to the State.

Your Committee received testimony in support of this measure from the Department of Transportation and State Procurement Office. Your Committee received testimony in opposition to this measure from the International Brotherhood of Electrical Workers Local 1260 and Subcontractors Association of Hawaii.

Your Committee finds that challenges often arise in the procurement process for construction projects. For example, there may be situations when it is not practicable or advantageous to procure construction using the usual methods or criteria in the Hawaii Public Procurement Code. This measure therefore allows for innovative procurement methods that take into consideration the complexities involved in government procurement for construction. Your Committee further finds that this measure offers a balanced solution that provides for increased efficiency and enhanced adaptability while also maintaining accountability in furtherance of the public interest.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1155, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1155, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

KYLE T. YAMASHITA, Chair