STAND. COM. REP. NO. 2970

Honolulu, Hawaii

RE: H.B. No. 3087

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Health, to which was referred H.B. No. 3087, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose of this measure is to designate the chief executive officer of the Hawaii Health Systems Corporation as its chief procurement officer, and to raise the small purchases procurement threshold from $25,000 to $50,000.

Your Committees received testimony in support of this measure from the Department of Accounting and General Services, State Procurement Office, Hawaii Health Systems Corporation, West Kauai Medical Center, and four individuals.

The utmost concern of your Committees is the protection of patient care and safety. Testimony from the Hawaii Health Systems Corporation before a joint legislative committee during the interim on procurement was rife with incidences of delayed procurement or no procurement of essential medical supplies and equipment. Your Committees are cognizant of the transitional difficulties inherent in the repeal of the Hawaii Health Systems Corporation's procurement exemption pursuant to Act 216, Session Laws of Hawaii 2004. Your Committees find that designating a chief procurement officer for the Hawaii Health Systems Corporation would go a long way to facilitate timely conformity with procurement requirements.

With regard to small purchases, your Committees find that measure brings into line the reality of the costs of goods and services with the threshold of small purchase contracts. It is the intent of your Committees to facilitate procurements from smaller businesses by providing flexible and expedient purchases of smaller amounts.

Your Committees have amended this measure by changing the effective date to July 1, 2006.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 3087, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 3087, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Government Operations and Health,

____________________________

ROSALYN H. BAKER, Chair

____________________________

LORRAINE R. INOUYE, Chair