STAND. COM. REP. NO.  1081

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 963

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred H.B. No. 963, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

begs leave to report as follows:

 

     The purpose of this bill is to provide for a fair and equitable procurement contract between the State or county governments and an architect, engineer, surveyor, or landscape architect licensed under Chapter 464, Hawaii Revised Statutes (Contractor), by:

 

     (1)  On or after July 1, 2007, prohibiting contracts of less than $5,000,000 from requiring the Contractor to defend the governmental body against any liability that arises from the Contractor's performance under the contract (Defense Clause);

 

     (2)  Allowing provisions in contracts that require the Contractor to indemnify or hold harmless the government from any liability arising from the Contractor's own negligence, errors, or omissions; and

 

     (3)  Requiring the government to commence legal action against a Contractor that is based on a Defense Clause in a pre-July 1, 2007, contract, within ten years from the date of execution of the contract.

 

     The Small Business Regulatory Review Board, Coalition of Hawaii Engineering and Architectural Professionals, Kai Hawaii Inc., Cedric D.O. Chong & Associates, Incorporated, The Limtiaco Consulting Group, Masa Fujioka & Associates, Engineering Solutions, Inc., American Council of  Engineering Companies of Hawaii, and Gray, Hong, Nojima & Associates, Inc., testified in support of this bill.  The Department of the Corporation Counsel of the City and County of Honolulu opposed this measure.

 

     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. 963, H.D. 2, and recommends that it pass Third Reading.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair