Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1100
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 1100 entitled: 


begs leave to report as follows:

     The purpose of this measure is to clarify and streamline the
Hawaii public procurement laws and process, consolidate
procurement legislation in chapter 103, Hawaii Revised Statues
(HRS), into chapter 103D, HRS.

     In addition, the measure deletes unnecessary or incorrect
provisions and makes other housekeeping amendments to improve the
efficiency of the procurement process.  This measure also
provides that pursuant to county charter, the managers or chief
engineers of the respective county water supply authorities are
the designated chief procurement officers.

     Testimony in support of this measure was received from the
the State Procurement Office (SPO) and the Department of Water
for the County of Kauai.  The SPO also submitted suggested

     Your Committee finds that the Hawaii procurement code needs
improvement and refining and that this measure will make the
State procurement process more efficient and cost-effective.  

     Your Committee further finds that nonprofit rehabilitation
facilities tend to receive less than fair market value because

a                                                     SB1100 SD1
                                   STAND. COM. REP. NO. 393
                                   Page 2

competitive bidding is not implemented when a public agency
procures from these facilities.  That procurement process needs
to be changed.

     Your Committee has amended this measure by deleting the
provisions that transfer the sections relating to purchases from
qualified community rehabilitation programs into chapter 103D,
HRS.  As a result, this measure, which repeals part V of
chapter 103, HRS, repeals the provisions relating to procurements
from qualified community rehabilitation programs.  Your Committee
believes this issue is more appropriately addressed in S.B.
No. 129.

     Your Committee further amended this measure by making
technical, nonsubstantive changes for purposes of clarity and
preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 1100, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1100, S.D. 1, and be referred to the Committee on Ways and

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,

                                   ROD TAM, Chair

a                                                     SB1100 SD1