STAND. COM. REP. NO.  790

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1292

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1292, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to increase transparency and accountability in state contracts by establishing a task force to examine the issue of past performance and establish the factors that should be considered when evaluating a construction industry contractor's past performance for the purposes of awarding a construction contract under Chapter 103D, Hawaii Revised Statutes.

The State Procurement Office, Subcontractors Association of Hawaii, Hawaii Operating Engineers Industry Stabilization Fund, and the General Contractors Association of Hawaii provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Broadening the scope of the task force by requiring the task force to examine the issue of past performance and establish the factors that should be considered when evaluating past performance to:

          (A)  All contracts awarded under Hawaii's Procurement Code rather than only construction contracts; and

          (B)  All contracts made by state and county agencies to provide health services or human services to Hawaii's residents;

     (2)  Changing the membership of the task force to include the directors of finance, health, human services, and public safety, or their designees;

     (3)  Removing the representative from the Building Industry Association of Hawaii from the task force;

     (4)  Revising the issues to be addressed by the task force when establishing the factors to be considered in evaluating a contractor's past performance;

     (5)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (6)  Making technical, nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1292, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1292, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair