STAND. COM. REP. NO.894

Honolulu, Hawaii

, 2003

RE: S.B. No. 686

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 686, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to provide more equity for certain resident state bidders in the bid process of procurement contracts for less that $25,000.

Your Committee finds that, in the procurement bidding process, local bidders are sometimes at a disadvantage when including applicable general excise and use taxes in their bid amounts, while out of state bidders may not be subject to the same requirements. This measure, while not absolving a bidder of any tax liabilities, will require a purchasing agency to exclude the amount of applicable general excise tax or use tax in the bid amount during the evaluation of any bid.

Your Committee has amended this measure by substituting, for the word "corporation" in the new proposed section 103D- (b)(1), the word "business", which is included in the definitions contained in section 103D-104, to broaden the forms of legal entities included under this provision. Your Committee has further made other technical nonsubstantive changes for clarity 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. 686, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 686, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair