Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 16, H.D. 1, entitled:

begs leave to report as follows:

The primary purpose of this measure is to temporarily increase the small purchase procurement exception dollar ceiling in order to facilitate quicker administration of public contracts during this time of severe economic crisis.

Your Committee finds that the economy of the State has been devastated by the September 11, 2001, terrorist attacks against the United States. There has been a significant increase in the number of initial filings for unemployment benefits, and a high percentage of the recently furloughed employees were previously employed by the airlines or other businesses within the sluggish tourism sector of the economy. Your Committee believes that the State must help these displaced workers find employment in different industries.

Historically, when the tourism industry has faltered in Hawaii, bolstering the construction industry has proven to be the best remedy. An effective way for the State to bolster the construction industry is to fund public construction projects, and to facilitate more rapid implementation of such projects in order to put as many people to work as quickly as possible.

Therefore, your Committee supports the intent of this measure, to temporarily ease the administrative burdens associated with awarding public contracts, especially construction contracts.

Your Committee also agrees that state residents should be the primary beneficiaries of any emergency measures enacted during this special session, so that these displaced resident workers can find jobs, support their families, and continue to live as residents of this State. Therefore, your Committee also supports the provisions of this measure that provide a preference for state resident contractors.

Finally, your Committee also believes that there must be some accountability for all projects initiated pursuant to the emergency measures taken during this third special session, and supports the requirement that a report be submitted for all such projects with a total value of $100,000 or more.

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. 16, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.