STAND. COM. REP. NO. 110

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1039

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committees on Transportation and International Affairs and Tourism and Government Operations, to which was referred S.B. No. 1039 entitled:

 

"A BILL FOR AN ACT RELATING TO INTERNATIONAL TRADE AGREEMENT,"

 

beg leave to report as follows:

 

     The purpose of this measure is to prohibit the future binding of the State to government procurement rules contained in an international trade agreement without legislative action.

 

     Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism.

 

     Your Committees find that a number of today's international free trade agreements contain policy obligations and restrictions that would take precedence over state and local government provisions relating to state purchasing laws and preferences.  These trade agreements may contain provisions that undermine provisions of the State's public procurement code and other state preference and set-aside policies established to promote and protect various sectors and groups of our local economy.  However, questions relating to the State's public procurement code or decisions relating to state preference and set-aside policies are within the legislative domain and should require legislative action.

 

     Your Committees note that the Governor vetoed H.B. No. 2199, C.D. 1, 2006, relating to international trade agreements.  This measure addresses those veto considerations to the extent possible by legislative action.

 

     As affirmed by the records of votes of the members of your Committees on Transportation and International Affairs and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1039 and recommend that it pass Second Reading and be referred to the Committee on Judiciary and Labor.

 

Respectfully submitted on behalf of the members of the Committees on Transportation and International Affairs and Tourism and Government Operations,

 

____________________________

CLARENCE K. NISHIHARA, Chair

 

____________________________

J. KALANI ENGLISH, Chair