STAND. COM. REP. NO. 2103

Honolulu, Hawaii

, 2006

RE: S.B. No. 2997

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Media, Arts, Science, and Technology, to which was referred S.B. No. 2997 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose of this measure is to exempt the High Technology Development Corporation (HTDC) from the procurement code.

Your Committees received testimony in support of this measure from HTDC and High Technology Innovation Corporation. Testimony in opposition was received from the Department of Accounting and General Services and State Procurement Office.

Act 216, Session Laws of Hawaii 2004, repealed the procurement code exemptions for the High Technology Development Corporation in sections 206M-3, Hawaii Revised Statutes, relating to general powers of the corporation, and section 206M-42, Hawaii Revised Statutes, relating to special facility leases. However, Act 216 did not amend section 206M-16(b), Hawaii Revised Statutes, which provides an exemption for project agreements, construction contracts, lease and sublease agreements, or other contracts, unless a project agreement otherwise requires.

The Attorney General recommended, in testimony on October 24, 2005 before the Joint Legislative Procurement Task Force, that sections 206M-3 and 206M-42, Hawaii Revised Statutes, be amended to restore the exemptions that were repealed by Act 216 if the intent of the legislature is to confer a broad procurement exemption on the corporation.

Your Committees find that the one current exemption under section 206M-16(b), Hawaii Revised Statutes, is too specific to be read as a broad exemption and therefore this exemption is appropriate.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Media, Arts, Science, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2997 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Government Operations and Media, Arts, Science, and Technology,

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CAROL FUKUNAGA, Chair

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LORRAINE R. INOUYE, Chair