STAND. COM. REP. NO. 2213

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2388

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Higher Education, to which was referred S.B. No. 2388 entitled:

 

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

 

begs leave to report as follows:

 

     The purpose of this measure is to exempt the University of Hawaii from Hawaii Public Procurement Code requirements.

 

     Testimony in support of this measure was submitted by the University of Hawaii System and the University of Hawaii at Manoa Athletics Department.  The State Procurement Office, Subcontractors Association of Hawaii and American Council of Engineering Companies of Hawaii submitted testimony in opposition.  The Coalition of Hawaii Engineering and Architectural Professionals submitted proposed amendments.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure provides the University of Hawaii with greater flexibility in procurement, which is especially helpful in completing much-needed maintenance and capital renewal projects in a timely manner.  Your Committee further finds that the University of Hawaii and the American Council of Engineering Companies of Hawaii have agreed to amendments relating to the procurement of design professional services; however, the State Procurement Office and the Subcontractors Association of Hawaii still have concerns with this measure and have yet to agree on the means to adequately address these concerns.

 

     In accordance with the findings, your Committee has made the following amendments to this measure:

 

     (1)  Requiring that design professional services furnished by licensees under chapter 464, Hawaii Revised Statutes, shall be procured by the Board of Regents or the University of Hawaii pursuant to section 103D-304, Hawaii Revised Statutes;

 

     (2)  Inserting an effective date of July 1, 2050, to allow for further discussion of this measure; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

 

     This measure addresses recurring issues such as the application of consistent and fair procurement laws across state agencies and the appropriate balance of procurement flexibility and accountability that state agencies require to operate efficiently and effectively.  Your Committee recognizes that these are challenging issues and encourages continued dialogue among the parties to address these unresolved issues.

 

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2388, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2388, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.

 

Respectfully submitted on behalf of the members of the Committee on Higher Education,

 

 

 

____________________________

RUSSELL S. KOKUBUN, Chair