STAND. COM. REP. NO. 1827

Honolulu, Hawaii

RE: H.B. No. 987

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 987, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to enhance procurement accountability.

Specifically, the measure:

(1) Establishes the state procurement automation system special fund, into which shall be deposited:

(A) Certain vendor-collected transaction fees for the administration, management, operation, maintenance, and upgrade of the procurement automation system; and

(B) Legislative appropriations to the fund; and

(2) Provides that the Executive Director of the School Facilities Authority shall be the Chief Procurement Officer of the School Facilities Authority.

Your Committee received written comments in support of this measure from the Department of Accounting and General Services and State Procurement Office.

Your Committee finds that a special fund is necessary to streamline the self-funded model for the procurement automation system and to facilitate the State Procurement Office's access to the collected transaction fees that will fund the system.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 987, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair