Bill Text: HI HB1909 | 2022 | Regular Session | Amended
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-18 - Passed Second Reading as amended in HD 2 and referred to the committee(s) on CPC with Representative(s) Ward voting aye with reservations; Representative(s) D. Kobayashi voting no (1) and Representative(s) Eli, Kapela excused (2). [HB1909 Detail]
Download: Hawaii-2022-HB1909-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1909 |
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THIRTY-FIRST LEGISLATURE, 2022 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is important that the state government utilize local businesses and entities whenever practically possible as it is in the best interest of the State to direct its vast internal operational resources toward supporting Hawaii's economic infrastructure. The legislature further finds that one such area of support is using a Hawaii chartered bank or credit union for the utilization of the State's purchasing card program, or P-card program, which is the system of credit cards used by state agencies for state approved purchases of goods and services. The legislature additionally finds that it is of utmost importance to ensure that the money being spent by the State for these necessities stays within local financial institutions to strengthen the State's financial sectors and grow the State's overall economy internally.
The legislature also finds that using offshore banks chartered in other areas will direct state resources to the benefit of other entities at the expense of Hawaii's own financial well-being. The legislature further finds that using off-shore banking entities for the state P-card program could create issues of oversight and accountability, insofar as service and quality control for the state's resources. The legislature is concerned that the P-card program has been awarded to an offshore entity and that the previous performance issues of this entity highlight the concerns of a procurement award that disadvantages local financial entities against that of offshore entities. Besides having no discernable market experience or presence in Hawaii, the legislature is concerned that this entity in particular has a history of broken settlement promises to the State, counties, and in particular Native Hawaiian businesses and homeowners. Furthermore, the legislature finds that this offshore entity has breached its exclusive contract with another state and violated the rights of thousands of benefit recipients under that state's program, which it ran when the bank failed to implement basic Payment Card Industry Data Security Standard industry-standards on its cards and also generated numerous complaints of spotty service and oversight.
The legislature additionally finds that bid preferences and other areas of the procurement code afford local businesses a preference insofar as awarding of state contracts, given the concerns and the precedence of bid preferences for local entities. The legislature further finds that giving a preference to local financial institutions for the state P-pard Program would serve the fairness and balance of the procurement code while protecting the State's interests.
The purpose of this Act is to establish a preference for the state purchasing card program to contract with a bank or credit union located within the State to provide services for the program.
SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§103D- Purchasing card program; contracts;
preference. In establishing a purchasing card program to
provide government agencies with a state procurement card, the state
procurement office shall give preference for contracting with a bank or credit
union domiciled in the State to provide services for the program."
SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval.
Report Title:
Procurement; Purchasing Card Program; Contracts; Preference
Description:
Requires the state procurement office to give preference to a bank or credit union located in Hawaii to provide services for a purchasing card program. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
