Bill Text: HI SB3185 | 2024 | Regular Session | Amended
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-16 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB3185 Detail]
Download: Hawaii-2024-SB3185-Amended.html
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THE SENATE |
S.B. NO. |
3185 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.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:
"§103D- Alternative procurements. (a)
A procuring agency may select an alternative procurement method when the
alternative procurement method is made part of a federal statute, federal regulation,
federal special experimental, or demonstration project, or by federal approval
of the alternative procurement method.
(b) The head of a
purchasing agency shall determine in writing that it is neither practicable nor
advantageous to the State to procure using the other methods in section
103D-301 before selecting the use of the alternative procurement method.
(c) Documentation of
the federal statute, federal regulation, federal special experimental, or
federal demonstration project, or the federal approval of the alternative
procurement method, shall be made part of the contract file."
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] goods, services, or
construction 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] goods, services, or construction 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
(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. Section 103D-301, Hawaii Revised Statutes, is amended to read as follows:
"§103D-301 Methods of source selection. Unless otherwise authorized by law, all contracts shall be awarded pursuant to the following sections, as applicable:
(1) Section
103D-302 (Competitive sealed bids);
(2) Section
103D-303 (Competitive sealed proposals);
(3) Section 103D-304
(Professional services procurement);
(4) Section 103D-305
(Small purchases);
(5) Section 103D-306 (Sole
source procurement); [and]
(6) Section 103D-307
(Emergency procurements)[.]; and
(7) Section
103D- (Alternative procurements)."
SECTION 4. Section 103D-405, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d)
Outside contractors may be utilized to prepare specifications and work
statements in the development of a solicitation. Contractors paid for those services shall be
precluded from bidding on or receiving a contract when they participated in [any
way in] the development of the solicitation package or any resulting
contract[.], unless the chief procurement officer determines in
writing that it is in the best interest of the State and authorizes a waiver."
SECTION 5. Statutory
material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2112.
Report Title:
Methods of Source Selection; Alternative Procurement; and Government Services
Description:
Amends chapter 103D, HRS, to add to part III a new section
allowing an alternative procurement method when the federal government provides
for or approves the alternative procurement method, and the head of the
purchasing agency makes a written determination that it is neither practicable
nor advantageous to use the existing statutory procurement methods. Amends sections 103D-102(b)(4) and
103D-102(b)(4)(L), HRS, to exempt certain construction procurement from the
Hawaii Public Procurement Code when it is neither practicable nor advantageous
to the State. Amends section 103D-301,
HRS, methods of source selection, to add the alternative procurement
method. Amends section 103D-405, HRS, to
allow the Chief Procurement Officer to provide a waiver for certain outside
contractors that participated in the development of a solicitation package that
would otherwise be precluded from bidding on or receiving a contract. Takes effect 7/1/2112. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
