STAND. COM. REP. NO. 663-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2136

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2136 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this bill is to clarify the debarment provisions relating to the procurement of professional services to reduce abuse of the system. This bill:

(1) Requires that debarment and suspension be imposed only in the public interest for a governmental body's protection and not for punishment purposes;

(2) Requires the chief procurement officer to consider specific factors before deciding on debarment, including the seriousness of the contractor's acts and any remedial measure or mitigating factors;

(3) If a cause for debarment exists, places the burden of proof on the contractor to convince the chief procurement officer that debarment is not necessary; and

(4) Specifies that the recommendations of the procurement selection committee in ranking qualified individuals shall not be overturned without due cause unless there is evidence of fraud in the selection process.

 

Supporting testimony was submitted by General Contractors Association of Hawaii, Structural Engineers Association of Hawaii, Hawaii Society of Professional Engineers, American Society of Civil Engineers, Coalition of Hawaii Engineering & Architectural Professionals, American Council of Engineering Companies of Hawaii, Paul Louie & Associates, Inc., Ronald N.S. Ho & Associates, Inc., Architects Pacific, Inc., MKengineers, Controlpoint Surveying, Inc., Pacific Structural Consultants, Inc., Bills Engineering, Inc., Tanimura & Associates, Inc., and two individuals. The Department of Accounting and General Services and the American Public Works Association supported the intent of this measure. The State Procurement Office opposed this bill.

Your Committee has amended this bill by:

(1) Clarifying that fraud should not be the only cause for overturning a procurement selection committee's recommendation;

(2) Changing the effective date to July 1, 2010, for continued discussion; and

(3) Making technical, nonsubstantive amendments for clarity and to correct drafting errors.

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. 2136, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2136, H.D. 1, and be placed on the calendar for Third Reading.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair