Hawaii 2022 Regular Session

Hawaii Senate Bill SB2386 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 2386 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT relating to procurement. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 2386
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	2386
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to procurement.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature finds that due to the nature of construction, procuring agencies will occasionally discover that they must perform unanticipated or unexpected work that was not in the original scope of work. Under existing procurement laws, this additional work must be separately procured pursuant to the state procurement code in chapter 103D, which often leads to project delays and increased costs for the overall project. Accordingly, the purpose of this Act is to exempt construction projects below the small purchase threshold from competitive procurement when it is not practical nor beneficial to the State. SECTION 2. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies: (1) Solicited or entered into before July 1, 1994, unless the parties agree to its application to a contract solicited or entered into prior to July 1, 1994; (2) To disburse funds, irrespective of their source: (A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances; (B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements; (C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee; (D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law; (E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission; (F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping; (G) To governmental bodies of the State; (H) As loans, under loan programs administered by a governmental body; and (I) For contracts awarded in accordance with chapter 103F; (3) To procure goods, services, or construction from a governmental body other than the University of Hawaii bookstores, from the federal government, or from another state or its political subdivision; (4) To procure the following goods or services which are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State: (A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings; (B) Works of art for museum or public display; (C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form; (D) Meats and foodstuffs for the Kalaupapa settlement; (E) Opponents for athletic contests; (F) Utility services whose rates or prices are fixed by regulatory processes or agencies; (G) Performances, including entertainment, speeches, and cultural and artistic presentations; (H) Goods and services for commercial resale by the State; (I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds; (J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside this State; (K) Financing agreements under chapter 37D; [and] (L) Any other goods or services which the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and (M) Any other construction projects pursuant to the small purchase threshold under section 103D-305, that the policy board determines by rules, or the chief procurement officer determines in writing, is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and (5) Which are specific procurements expressly exempt from any or all of the requirements of this chapter by: (A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and (B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT) which require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms." SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The legislature finds that due to the nature of construction, procuring agencies will occasionally discover that they must perform unanticipated or unexpected work that was not in the original scope of work. Under existing procurement laws, this additional work must be separately procured pursuant to the state procurement code in chapter 103D, which often leads to project delays and increased costs for the overall project.
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51	51	Accordingly, the purpose of this Act is to exempt construction projects below the small purchase threshold from competitive procurement when it is not practical nor beneficial to the State.
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53	53	SECTION 2. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
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55	55	"(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
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57	57	(1) Solicited or entered into before July 1, 1994, unless the parties agree to its application to a contract solicited or entered into prior to July 1, 1994;
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59	59	(2) To disburse funds, irrespective of their source:
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61	61	(A) For grants as defined in section 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;
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63	63	(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;
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65	65	(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;
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67	67	(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;
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69	69	(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;
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71	71	(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;
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73	73	(G) To governmental bodies of the State;
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75	75	(H) As loans, under loan programs administered by a governmental body; and
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77	77	(I) For contracts awarded in accordance with chapter 103F;
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79	79	(3) To procure goods, services, or construction from a governmental body other than the University of Hawaii bookstores, from the federal government, or from another state or its political subdivision;
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81	81	(4) To procure the following goods or services which are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
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83	83	(A) Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings;
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85	85	(B) Works of art for museum or public display;
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87	87	(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;
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89	89	(D) Meats and foodstuffs for the Kalaupapa settlement;
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91	91	(E) Opponents for athletic contests;
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93	93	(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;
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95	95	(G) Performances, including entertainment, speeches, and cultural and artistic presentations;
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97	97	(H) Goods and services for commercial resale by the State;
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99	99	(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State's or counties' bonds;
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101	101	(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside this State;
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103	103	(K) Financing agreements under chapter 37D; [and]
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105	105	(L) Any other goods or services which the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
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107	107	(M) Any other construction projects pursuant to the small purchase threshold under section 103D-305, that the policy board determines by rules, or the chief procurement officer determines in writing, is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and
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109	109	(5) Which are specific procurements expressly exempt from any or all of the requirements of this chapter by:
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111	111	(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and
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113	113	(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT) which require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms."
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115	115	SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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117	117	SECTION 4. This Act shall take effect upon its approval.
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121	121	INTRODUCED BY: _____________________________
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123	123	INTRODUCED BY:
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125	125	_____________________________
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131	131	Report Title: Procurement; Small Purchase Construction Project; Exemption Description: Exempts certain small purchase construction projects from the procurement code. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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137	137	Report Title:
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139	139	Procurement; Small Purchase Construction Project; Exemption
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143	143	Description:
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145	145	Exempts certain small purchase construction projects from the procurement code.
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153	153	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.