STAND. COM. REP. NO. 990

Honolulu, Hawaii

, 2025

RE: H.B. No. 381

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. 381 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to increase the procurement thresholds for small purchases.

Your Committee received testimony in support of this measure from the Department of Corrections and Rehabilitation; Department of Transportation; Office of the Mayor of the City and County of Honolulu; and Honolulu Police Department. Your Committee received testimony in opposition to this measure from the State Procurement Office.

Your Committee finds that the existing small purchase dollar thresholds have not been adjusted since 1997, despite significant inflation and rising costs of goods, services, and construction. This measure ensures that state agencies can maintain their intended purchasing power while preserving efficiency and competition in the procurement process.

Your Committee has amended this measure by:

(1) Changing the procurement thresholds for small purchases to unspecified amounts; and

(2) 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. 381, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 381, 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