STAND. COM. REP. NO. 943

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 789

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sir:

 

     Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 789, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Authorize a special procurement process for the procurement of goods and services;  

 

     (2)  Require the Procurement Policy Board to establish rules and procedures for the special procurement process by December 31, 2021;  

 

     (3)  Require the head of a purchasing agency to prepare a procurement plan and submit the plan to the Attorney General or Corporation Counsel; and  

 

     (4)  Require the head of a purchasing agency to electronically post, for at least one year, public notice of special procurement contracts within seven days of the contract award.

 

     Your Committees received testimony in support of this measure from the Department of Transportation.  Your Committees received comments on this measure from the State Procurement Office.

 

     Your Committees find that competition in the public procurement process is necessary to prevent favoritism, collusion, or fraud in the award of public contracts.  Your Committees further find, however, that increased flexibility in the procurement process is needed to respond in a timely and appropriate manner to changing and challenging circumstances.  This measure will provide greater flexibility while preserving transparency and integrity in the procurement process.

 

     Your Committees have amended this measure by:

 

     (1)  Requiring the head of a purchasing agency to electronically post all contracts awarded through a special procurement process;

 

     (2)  Inserting an effective date of May 6, 2137, to encourage further discussion; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 789, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 789, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

 

________________________________

DONOVAN M. DELA CRUZ, Chair

 

________________________________

KARL RHOADS, Chair