STAND. COM. REP. NO. 905

Honolulu, Hawaii

, 2005

RE: S.B. No. 1127

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1127, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC PROCUREMENT CODE,"

begs leave to report as follows:

The purpose of this measure is to streamline certain purchases under the Procurement Code.

Specifically, this bill provides that vendors in small purchase contracts with the State are no longer required to produce documents demonstrating compliance with the Procurement Code. In addition, the bill eliminates the requirement that, upon award of a contract under the Procurement Code, all vendors must be incorporated or organized under state law or be registered to do business in the State as a separate branch or division capable of fully performing under the contract.

Your Committee finds that this bill will benefit many small businesses by eliminating the requirement to obtain a tax clearance, a certificate of good standing, and a certificate of compliance to be eligible for small purchases by the State. There is evidence that some vendors refuse to accept small orders for state purchases because of the trouble and inconvenience of complying with the documentation required by the Procurement Code. Elimination of the documentation requirement for small purchases will benefit both vendors and government agencies, reducing costs and paperwork.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1127, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair