Bill Text: HI SB1275 | 2013 | Regular Session | Amended
Bill Title: Kahoolawe Island Reserve Commission; Procurement Exemption
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2013-03-19 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and none excused (0). [SB1275 Detail]
Download: Hawaii-2013-SB1275-Amended.html
STAND. COM. REP. NO. 160
Honolulu, Hawaii
RE: S.B. No. 1275
Honorable Donna Mercado Kim
President of the Senate
Twenty-Seventh State Legislature
Regular Session of 2013
State of Hawaii
Madam:
Your Committees on Water and Land and Economic Development, Government Operations and Housing, to which was referred S.B. No. 1275 entitled:
"A BILL FOR AN ACT RELATING TO THE KAHO‘OLAWE ISLAND RESERVE COMMISSION,"
beg leave to report as follows:
The purpose and intent of this measure is to grant the Kaho‘olawe Island Reserve Commission (Commission) a permanent procurement exemption for the procurement of food or fuel products necessary for the Commission to carry out the purposes of chapter 6K, Hawaii Revised Statutes, relating to the Kaho‘olawe Island Reserve law.
Your Committees received testimony in support of this measure from the Kaho‘olawe Island Reserve Commission.
Your Committees find that strict adherence to procurement code requirements is frequently not practicable for the Commission or advantageous to the State.
Act 159, Session Laws of Hawaii 2010, provided a temporary procurement exemption to the Commission. The exemption sunsets on July 1, 2013. Your Committees find that the uniqueness of the Commission's work necessitates a procurement exemption. For example, personnel and cargo are typically transported between Maui and Kaho‘olawe by boat, and helicopter transportation is used only sparingly due to its high cost. Both methods of transportation involve several variables, including the weather, mechanical functions, and personnel availability. Additionally, both methods of transportation have size and weight limitations for their cargo. The Commission's requirements for fuel products are also unique in the State, as the Commission takes delivery and transports its own fuel supplies in multiple forms, such as bulk and barrel, which are not currently provided by the state contracted fuel provider. Furthermore, food vendor prices change weekly, if not more frequently, and the Commission's food orders change weekly in terms of products and quantities ordered.
Purchasing flexibility under the current temporary exemption has allowed the Commission to make the most cost effective and healthiest selections of local produce when available. Testimony of the Commission indicates that it has been able to reduce waste by purchasing smaller quantities on sale or at reduced prices, whereas purchasing from the state price list would entail larger bulk orders tailored for much larger institutions and operations.
As affirmed by the records of votes of the members of your Committees on Water and Land and Economic Development, Government Operations and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1275 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Water and Land and Economic Development, Government Operations and Housing,
____________________________ DONOVAN M. DELA CRUZ, Chair |
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____________________________ MALAMA SOLOMON, Chair |
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