THE SENATE S.B. NO. 1474 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PROCUREMENT. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: THE SENATE S.B. NO. 1474 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII THE SENATE S.B. NO. 1474 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PROCUREMENT. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. 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, or construction that 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 the State; (K) Financing agreements under chapter 37D; (L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that: (i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph; (ii) Awards over $2,500 shall comply with section 103D-310(c); and (iii) Awards over $500,000 shall be approved by the superintendent of education; and (M) Any other goods [or], services, or constuction 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) That 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), that require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms." SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 3. This Act shall take effect upon its approval; provided that the amendments made to section 103D-102(b), Hawaii Revised Statutes, by section 1 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024. INTRODUCED BY: _____________________________ BY REQUEST SECTION 1. 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, or construction that 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 the State; (K) Financing agreements under chapter 37D; (L) Educational materials and related training for direct student instruction in career and technical education programs as defined in section 302A-101, including supplies, implements, tools, machinery, electronic devices, or other goods purchased by the department of education; provided that: (i) The department of education shall acquire three written quotes for purchases that exceed $100,000 made pursuant to this subparagraph; (ii) Awards over $2,500 shall comply with section 103D-310(c); and (iii) Awards over $500,000 shall be approved by the superintendent of education; and (M) Any other goods [or], services, or constuction 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) That 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), that require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms." SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 3. This Act shall take effect upon its approval; provided that the amendments made to section 103D-102(b), Hawaii Revised Statutes, by section 1 of this Act shall not be repealed when that section is reenacted on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024. INTRODUCED BY: _____________________________ BY REQUEST INTRODUCED BY: _____________________________ BY REQUEST Report Title: Procurement; Exemptions; Construction Projects Description: Exempts from the Hawaii Public Procurement Code contracts by government bodies to procure certain construction projects. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. Report Title: Procurement; Exemptions; Construction Projects Description: Exempts from the Hawaii Public Procurement Code contracts by government bodies to procure certain construction projects. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.