STAND. COM. REP. NO. 385-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2397

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 Labor & Government Operations and Education, to which was referred H.B. No. 2397 entitled:

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

beg leave to report as follows:

The purpose of this measure is to exempt career and technical education goods and services purchases by the Department of Education from the State Procurement Code.

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

Your Committees find that career and technical education utilizes a wide range of activities and equipment to provide students with industry-based skills. However, the process to procure career and technical education equipment can be lengthy and complicated and often deters schools from purchasing them. This measure removes administrative barriers for purchasing career and technical education equipment, ensuring that students are provided with opportunities to gain important hands-on skills to prepare them for the workforce.

Your Committees have amended this measure by:

(1) Specifying that the exemption is for the purchase of educational equipment, materials, and related training for direct student instruction not exceeding $500,000 per purchase;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 whether the $500,000 cap amount should be set at a different amount, as the Department of Education did not have a recommended cap amount at this hearing.

As affirmed by the records of votes of the members of your Committees on Labor & Government Operations and Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2397, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2397, H.D. 1, and be referred to your Committee on Finance.

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

____________________________ JUSTIN H. WOODSON, Chair

____________________________ SCOT Z. MATAYOSHI, Chair