Bill Text: HI HB2745 | 2012 | Regular Session | Introduced

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Bill Title: Capital Improvement Projects; General Obligations Bonds; Appropriation; Procurement

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-03-01 - (H) The committee(s) on FIN recommend(s) that the measure be deferred. [HB2745 Detail]

Download: Hawaii-2012-HB2745-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2745
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to public funds.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  The legislature finds that the State of Hawaii is still suffering from the global economic recession.  While some Hawaii businesses are showing modest signs of recovery, the construction industry, including construction workers, support staff, and construction-support businesses, is still suffering.

     The legislature further finds that Hawaii is experiencing the lowest interest rates on record and that there were significant savings from the State's most recent bond authorization and issuance.  In completing the bond transaction, the State:

     (1)  Reduced debt service by saving $59,000,000 on refunded outstanding debt;

     (2)  Kept debt service for fiscal 2012-2013 at legislatively appropriated levels;

     (3)  Restructured outstanding debt;

     (4)  Normalized the State's debt service profile;

     (5)  Built excess debt capacity from 2014 to 2019;

     (6)  Improved the State's financial position; and

     (7)  Garnered a positive credit rating.

     The primary economic objective of the legislature this session is to immediately stimulate direct and indirect job creation to maintain and create local construction jobs for all stages of construction, including employment for painters, roofers, electricians, carpenters, architects, engineers, and other consultants to generate more personal income growth.  The department of business, economic development, and tourism estimates that the last advancement of $1,800,000,000 in capital improvement projects by the State resulted in the creation of 12.9 direct and indirect jobs created for every $1,000,000 invested.

     In contemplating capital improvement projects, the legislature finds that a main focus should include repair and maintenance projects as well as those projects that address health and safety concerns.  This will ensure the existence of well-maintained state facilities and infrastructure, which are essential to maintaining a positive business climate and strong economic foundation.  Funding would be provided statewide and include efforts to eliminate current repairs and maintenance backlogs.

     The estimated backlog of repair and maintenance or capital renewal and deferred maintenance projects for the department of education, Hawaii state library system, University of Hawaii, University of Hawaii's athletic facilities, department of accounting and general services, department of agriculture, department of defense, department of health, Hawaii health systems corporation, department of human services, department of land and natural resources, department of public safety, and judiciary is well over $1,000,000,000.

     Another priority of the legislature is to develop sustainable and renewable energy resources, such as photovoltaic technology, as well as initiatives to improve upon efficient energy consumption.  Investing in energy and information technology initiatives throughout schools, hospitals, and office buildings, would have significant impact and ultimately lead to cost savings, alleviating the drain on general funds, and a reduction of the State's carbon footprint.

     The legislature also realizes that the procurement process is lengthy and complicated, which adds considerable time to completing capital improvements and repairs and maintenance in the State's facilities and infrastructure.  In order to expedite repair and maintenance projects, this Act provides a procurement exemption for certain agencies for contracts that are less than $500,000, and makes permanent other procurement provisions that are set to expire on July 1, 2012, and July 1, 2013.

     The purpose of this Act is to issue $500,000,000 in general obligation bonds to fund the repair and maintenance or capital renewal and deferred maintenance projects of various departments the University of Hawaii, the Hawaii health systems corporation, and the judiciary and to streamline the procurement process.

PART II

     SECTION 2.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects and address infrastructure needs, such as science and technology, electricity, and other utility infrastructure improvements, within the public school systems.  In carrying out the purpose of this part, the department of education shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 3.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of education's repair and maintenance projects and address infrastructure needs, such as science and technology, electricity, and other utility infrastructure improvements, within the public school systems.

     The sum appropriated shall be expended by the department of education for the purposes of this part.

PART III

     SECTION 4.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects in the Hawaii state library system.  In carrying out the purpose of this part, the Hawaii state library system shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 5.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for Hawaii state library system repair and maintenance projects.

     The sum appropriated shall be expended by the department of education for the purposes of this part.

PART IV

     SECTION 6.  The purpose of this part is to appropriate $           to reduce the backlog of capital renewal and deferred maintenance projects within the University of Hawaii system.  In carrying out the purpose of this part, the University of Hawaii shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 7.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the University of Hawaii's backlog of capital renewal and deferred maintenance projects.

     The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART V

     SECTION 8.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects within the University of Hawaii system's athletic facilities.  In carrying out the purpose of this part, the University of Hawaii shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 9.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the University of Hawaii's repair and maintenance projects for its athletic facilities.

     The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART VI

     SECTION 10.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of accounting and general services.  In carrying out the purpose of this part, the department of accounting and general services shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 11.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of accounting and general services' repair and maintenance projects.

     The sum appropriated shall be expended by the department of accounting and general services for the purposes of this part.

PART VII

     SECTION 12.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of agriculture.  In carrying out the purpose of this part, the department of agriculture shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 13.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of agriculture's repair and maintenance projects.

     The sum appropriated shall be expended by the department of agriculture for the purposes of this part.

PART VIII

     SECTION 14.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of defense.  In carrying out the purpose of this part, the department of defense shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 15.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of defense's repair and maintenance projects.

     The sum appropriated shall be expended by the department of defense for the purposes of this part.

PART IX

     SECTION 16.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of health.  In carrying out the purpose of this part, the department of health shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 17.  The director of finance is authorized to issue general obligation bonds in the sum of $            or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of health's repair and maintenance projects.

     The sum appropriated shall be expended by the department of health for the purposes of this part.

PART X

     SECTION 18.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the Hawaii health systems corporation.  In carrying out the purpose of this part, the Hawaii health systems corporation shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 19.  The director of finance is authorized to issue general obligation bonds in the sum of $          or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the Hawaii health systems corporation's repair and maintenance projects.

     The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this part.

PART XI

     SECTION 20.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of human services.  In carrying out the purpose of this part, the department of human services shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 21.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of human services' repair and maintenance projects.

     The sum appropriated shall be expended by the department of human services for the purposes of this part.

PART XII

     SECTION 22.  The purpose of this part is to appropriate $          to reduce the backlog of repair and maintenance projects of the department of land and natural resources.  In carrying out the purpose of this part, the department of land and natural resources shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 23.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the department of land and natural resources' repair and maintenance projects.

     The sum appropriated shall be expended by the department of land and natural resources for the purposes of this part.

PART XIII

     SECTION 24.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the department of public safety.  In carrying out the purpose of this part, the department of public safety shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 25.  The director of finance is authorized to issue general obligation bonds in the sum of $            or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the purpose of funding the department of public safety's repair and maintenance projects.

     The sum appropriated shall be expended by the department of public safety for the purposes of this part.

PART XIV

     SECTION 26.  The purpose of this part is to appropriate $           to reduce the backlog of repair and maintenance projects of the judiciary.  In carrying out the purpose of this part, the judiciary shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

     SECTION 27.  The director of finance is authorized to issue general obligation bonds in the sum of $            or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the judiciary's repair and maintenance projects.

     The sum appropriated shall be expended by the judiciary for the purposes of this part.

PART XV

     SECTION 28.  The legislature finds that the approval process for procurements can take longer than anticipated.  A streamlined procurement approval process for certain projects would assist in getting projects implemented to help stimulate growth of the workforce and the State's economy.  The purpose of this part is to provide an expedited process for the capital improvement projects authorized under this Act, provide a procurement exemption for certain agencies for contracts that are less than $250,000, and make permanent certain procurement provisions that are set to expire.

     SECTION 29.  Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Notwithstanding subsection (a), this chapter shall not apply to contracts made by:

     (1)  Any regional system board of the Hawaii health systems corporation;

     (2)  The Kaho‘olawe island reserve commission, except as provided by section 6K-4.5; [or]

     (3)  The department of education, University of Hawaii, department of accounting and general services, department of agriculture, department of defense, department of health, Hawaii health systems corporation as a body corporate and politic, department of human services, department of land and natural resources, department of public safety, and judiciary, for contracts that are less than $500,000; and

   [[(3)]]     (4)  Except with respect to sections 103D-110, 103D‑304 with respect to design professional services furnished by licensees under chapter 464, 103D-324, 103D-707, and 103D-1002, the university or the board of regents of the university."

     SECTION 30.  Section 103D-305, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Procurements of $25,000 to less than [$100,000] $250,000 shall be made in accordance with small purchase procedures[; provided that small purchase procurements through an electronic system shall be required after the policy board has adopted rules for electronic procurement and provided training to the affected agency]."

     SECTION 31.  Act 82, Session Laws of Hawaii 2010, is amended by amending section 8 to read as follows:

     "SECTION 8.  This Act shall take effect on July 1, 2010; provided that on July 1, 2012, sections 1 and 4 of this Act shall be repealed [and sections 103D-102(c) and 304A-105(b), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act]."

     SECTION 32.  Act 159, Session Laws of Hawaii 2010, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect on July 1, 2010[; provided that the amendment made to section 103D-102(c), Hawaii Revised Statutes, by this Act shall not be repealed when section 103D-102, Hawaii Revised Statutes, is reenacted on July 1, 2012, by section 14 of Act 175, Session Laws of Hawaii 2009; provided further that this Act shall be repealed on July 1, 2013; and provided further that, on July 1, 2013, section 103D-102, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of Act 175, Session Laws of Hawaii 2009]."

     SECTION 33.  Act 175, Session Laws of Hawaii 2009, as amended by Act 107, Session Laws of Hawaii 2010, is amended by amending section 14 to read as follows:

     "SECTION 14.  This Act shall take effect on July 1, 2009; provided that[:

     (1)  Part I shall be repealed on July 1, 2012, and sections 103D-102 and 103D-305, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act; and

     (2)  Sections] sections 7, 9, and 10 of this Act shall be repealed on July 1, 2011, and sections 103D-709, 103D‑710(c), and 103D-710(e), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act."

     SECTION 34.  (a)  The procurement policy board shall establish an accelerated procurement process to be used for the expenditure of funds appropriated pursuant to this Act. 

     (b)  The procurement policy board shall establish specific provisions relating to the protest of solicitations and awards made pursuant to this Act.  Provisions shall include strict requirements for when a protest is permissible, a requirement that the party protesting an award or solicitation post a bond, and an expedited process for resolving protests.

     (c)  The procurement policy board shall be exempt from the requirements of chapter 91, Hawaii Revised Statues, in meeting the requirements of this section.

     SECTION 35.  Capital improvement projects authorized pursuant to this Act shall be exempt from all county permit, license, and certificate requirements; provided that the capital improvement projects shall meet all other applicable county code requirements.

PART XVI

     SECTION 36.  The appropriation made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2014, shall lapse as of that date.

     SECTION 37.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 38.  This Act shall take effect upon its approval; provided that sections 31 and 33 shall take effect on June 30, 2012.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Capital Improvement Projects; General Obligations Bonds; Appropriation; Procurement

 

 

Description:

Issues general obligation bonds to fund the repair and maintenance or capital renewal and deferred maintenance projects of various departments, the University of Hawaii, Hawaii health systems corporation, and the judiciary.  Exempts contracts of less than $500,000 entered into by the department of education, University of Hawaii, department of accounting and general services, department of agriculture, department of defense, department of health, Hawaii health systems corporation as a body corporate and politic, department of human services, department of land and natural resources, department of public safety, and judiciary from the procurement code.  Provides for exemptions from county permitting, licensing, and certification requirements.  Makes certain procurement provisions permanent.  Requires the procurement policy board to create an expedited procurement process for contracts resulting from appropriations made pursuant to this Act.

 

 

 

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