STAND. COM. REP. NO.3292

Honolulu, Hawaii

, 2002

RE: H.B. No. 2420

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2420, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to make various amendments to update the procurement code.

In particular, this measure:

(1) Amends chapters 103 and 103D, Hawaii Revised Statutes, to clarify and consolidate certain provisions in those chapters;

(2) Establishes a new online bidding process;

(3) Increases the small purchase procurement exception dollar ceilings from $25,000 to $100,000 for goods, services, or construction, and to $250,000 for public school repair and maintenance projects;

(4) Gives the awarding procurement officer the discretion to determine when bid security is required;

(5) Establishes a procurement preference for state residents; and

(6) Appropriates funds to the State Procurement Office to effectuate the purposes of this measure.

Your Committee agrees with the intent of this measure, and finds that amending the public procurement code in this manner will further the State's policy of ensuring fiscal integrity, responsibility, and efficiency in the procurement process by clarifying and modernizing the law governing procurement.

Upon further consideration, your Committee has made technical, nonsubstantive amendments for the purposes of clarity and consistency.

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 H.B. No. 2420, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2420, H.D. 1, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair