STAND. COM. REP. NO. 728

Honolulu, Hawaii

RE: S.B. No. 383

S.D. 2

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 S.B. No. 383, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SMALL PURCHASES,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the expediency and efficiency of small purchase procurements.

Specifically, this measure increases from $25,000 to $50,000 the procurement threshold for small purchases not subject to the State's electronic procurement system.

Your Committee received written comments in support of this measure from the Hawaii State Public Library System and City and County of Honolulu.

Your Committee received written comments in opposition to this measure from the State Procurement Office.

Your Committee received written comments on this measure from the Honolulu Police Department.

Your Committee finds that the cost of supplies, equipment, construction materials, and services have risen rapidly since the current threshold amount was established. Accordingly, your Committee finds that the present threshold amount should be increased by a reasonable amount to address these increased costs.

Your Committee has amended this measure by:

(1) Changing the effective date to upon its approval; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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 S.B. No. 383, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 383, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair