STAND. COM. REP. NO. 337

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1929

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Tourism and Government Operations, to which was referred S.B. No. 1929 entitled:

 

"A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

 

begs leave to report as follows:

 

     The purpose of this measure is to allow the Chief Procurement Officer (CPO) to assess administrative fines for noncompliance with the Hawaii Public Procurement Code.

 

     Your Committee received testimony in support of this measure from the State Procurement Office (SPO).  Comments were received from the Department of Accounting and General Services (DAGS).

 

     Your Committee finds that existing law is lacking in a provision for the assessment of administrative fines for noncompliance with procurement laws.  While criminal sanctions exist that apply to providers of service and vendors of goods, such as termination of the contract, re-bid, debarment, and suspension, there are no administrative sanctions for anyone whose actions may not warrant criminal prosecution.

 

     On the recommendation of the CPO, your Committee has amended this measure by deleting its contents and inserting an amendment to the penalties provision of the Hawaii public procurement code, and to make a conforming statutory amendment.

 

     Your Committee notes the concerns of the DAGS to the effect that an appropriation for additional staff and consulting services is necessary to implement this measure and that public hearings are also necessary to adopt the rules required to effectuate this measure.  While these concerns are noted, your Committee does not believe that any additional funding is necessary since this measure, as amended, keeps costs to a minimum.  Your Committee believes that the adoption of administrative rules should not be difficult for DAGS, which has much experience in rule making.  Nor does your Committee believe that revisions to other chapters of the Hawaii Revised Statutes are necessary since the violations are confined to the provisions of the procurement code.

 

     As affirmed by the record of votes of the members of your Committee on Tourism and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1929, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1929, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CLARENCE K. NISHIHARA, Chair