STAND. COM. REP. NO. 1039

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1328

       H.D. 1

       S.D. 1

 

 

 

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 H.B. No. 1328, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE KAHO‘OLAWE ISLAND RESERVE,"

 

beg leave to report as follows:

 

     The purpose and intent of this Act is to grant the Kaho‘olawe Island Reserve Commission a permanent exemption from chapter 103D, Hawaii Revised Statutes, for the procurement of food or fuel products necessary for the Commission to carry out the purposes of chapter 6K, Hawaii Revised Statutes.

 

     Your Committees received testimony in support of this measure from Kohe Malamalama O Kanaloa Protect Kaho‘olawe Fund, Protect Kaho‘olawe ‘Ohana, and three individuals.

 

     Act 159, Session Laws of Hawaii 2010, provided a temporary procurement exemption to the Commission that 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 of 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.

 

     Your Committees have amended this measure by changing the effective date to June 30, 2013.

 

     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 H.B. No. 1328, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1328, H.D. 1, S.D. 1, 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		____________________________ MALAMA SOLOMON, Chair