Hawaii-2010-SB2457-Introduced

SECTION 1. The Kaho‘olawe island reserve consists of the island of Kaho‘olawe and the waters surrounding the island which extend two nautical miles seaward from the island's coastline. The forty-five-square-mile island and ninety square miles of waters are managed and controlled by the Kaho‘olawe island reserve commission, which is responsible for environmental protection and conservation, revegetation, habitat restoration, the preservation of archaeological and historical resources, and the promotion of traditional and cultural practices.

These responsibilities are carried out in a remote, hazardous, and challenging environment, as the reserve has been used for military training and bombing exercises for five decades. Despite a ten-year cleanup of unexploded ordnance, dangers persist throughout the Kaho‘olawe island reserve, necessitating the round-the-clock presence of personnel to protect public health and safety.

Personnel and cargo are typically transported between Maui and Kaho‘olawe by boat; helicopter transportation is used only sparingly due to its 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.

Due to these factors and other similar restrictions faced by the Kaho‘olawe island reserve commission in advancing its mission, including inherent planning, logistical, and timeliness challenges, strict adherence to procurement requirements are frequently not practicable or advantageous to the State.

The purpose of this Act is to provide an exemption from the Hawai‘i public procurement code for goods and services acquired for use in and construction acquired for the Kaho‘olawe island reserve.

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 or subsidies as those terms are 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) Goods and services procured for use in and construction procured for the Kaho‘olawe island reserve by the Kaho‘olawe island reserve commission; and

[~~(L)~~] (M) 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;

(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; and

(6) With a bidder or offeror who is a United States General Services Administration-approved sole source vendor, who shall be exempt from complying with section 103D-302, 103D-303, or 103D-304, as applicable, in any procurement funded by state and federal matching funds, if the bidder or offeror was responsible for obtaining and was the recipient of the federal funds."

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; provided that the amendments made to section 103D-102, Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when section 103D-102, Hawaii Revised Statutes, is reenacted on July 1, 2012, pursuant to Act 175, Session Laws of Hawaii 2009.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2457
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII