STAND. COM. REP. NO. 1263-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2070

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Education and Labor & Government Operations, to which was referred S.B. No. 2070, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

beg leave to report as follows:

The purpose of this measure is to temporarily:

(1) Exempt career and technical education goods and services purchased by the Department of Education from the Procurement Code; and

(2) Require the Department of Education to acquire three verbal or written quotes for career and technical education purchases of no more than $100,000.

Your Committees received testimony in support of this measure from the Department of Education; Department of Business, Economic Development, and Tourism; Hawaiʻi State Energy Office; and three individuals. Your Committees received comments on this measure from the State Procurement Office.

Your Committees find that as the largest department in the State, the Department of Education must procure numerous career and technical education equipment. However, the process to procure career and technical education equipment under the Procurement Code can be lengthy and complicated and can deter schools from purchasing these types of equipment. Your Committees believe that exempting from the Procurement Code educational materials and equipment related to training for direct student instruction in career and technical education programs within the Department of Education will enable the Department to timely acquire these types of materials and equipment, which will provide students with up-to-date skills and knowledge that align with industry standards.

Your Committees have amended this measure by:

(1) Requiring awards over $2,500 for career and technical education purchases to comply with statutory provisions requiring offerors, upon award of contract, to comply with all laws governing entities doing business in the State;

(2) Requiring awards over $500,000 for career and technical education purchases to be approved by the Superintendent of Education;

(3) Changing the effective date to July 1, 3000; and

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

Your Committees respectfully request your Committee on Finance, should it deliberate on this measure, to consider requiring the Department of Education to obtain three verbal or written quotes for purchases of more than $100,000, rather than for those below $100,000.

As affirmed by the records of votes of the members of your Committees on Education and Labor & Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2070, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2070, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Education and Labor & Government Operations,

____________________________ SCOT Z. MATAYOSHI, Chair

____________________________ JUSTIN H. WOODSON, Chair