STAND. COM. REP. NO. 2712

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2030

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2030, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the Hawaii Public Procurement Code to allow a bidder to submit corrections or amendments to a list of joint contractors or subcontractors and other required information up to two days prior to the closing date for bid submissions.

 

     Your Committee received testimony in support of this measure from the Building Industry Association of Hawaii; the General Contractors Association of Hawaii; Ralph S. Inouye Co., Ltd., General Contractor; and Royal Contracting Co., Ltd.  Testimony in opposition to this measure was submitted by the Subcontractors Association of Hawaii.

 

     Your Committee finds that this measure permits a bidder to ensure that all subcontractors who have submitted bids to the general contractor have met all of the requirements to perform the work on state and county projects, including meeting all licensing, bonding, and insurance requirements, as applicable.  The additional time is necessary because in most cases the general contractor does not receive bid prices from the various subcontractors until shortly before the bid must be submitted to the state agency.  However, your Committee further finds that this measure, as drafted, does not address how each agency would collect the subcontractors' bid submissions, and how that information would then be distributed to general contractors who may be planning to submit a bid proposal.

 

     Your Committee recognizes that since this measure was heard by your Committee on Public Safety, Government Operations, and Military Affairs, the various stakeholders of this measure have met and developed language.  Your Committee commends the stakeholders on reaching a compromise and has adopted their proposed language.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Deleting the amendments made to section 103D-302(b), Hawaii Revised Statutes, and replacing them with amendments made to section 103D-302(g), Hawaii Revised Statutes, to allow the chief procurement officer or head of a purchasing agency to allow the scope of work in a bid for a list subcontractor to be expanded within five working days of bid opening, with certain conditions, and to permit the reinstatement of certain subcontractors' licenses before an award is granted; and

 

     (2)  Inserting an effective date of July 1, 2050, to ensure further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2030, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2030, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

____________________________

CLAYTON HEE, Chair