HOUSE OF REPRESENTATIVES

H.B. NO.

2265

TWENTY-SIXTH LEGISLATURE, 2012

H.D. 2

STATE OF HAWAII

S.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE STATE PROCUREMENT CODE.

 

 

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

 


     SECTION 1.  Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:

     "§103D-305  Small purchases; prohibition against parceling.  (a)  Procurements of less than $100,000 for goods or services, or $250,000 for construction shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section.

     (b)  Procurements [of] greater than $50,000 for construction under subsection (a) shall require security by [a] performance [bond] and payment bonds, pursuant to section 103D-324, delivered to the [purchasing agency] procurement officer, that is:

     (1)  In a form prescribed by the rules of the policy board;

     (2)  Executed by a surety company authorized to do business in this State; and

     (3)  In an amount equal to one hundred per cent of the price specified in the contract,

or shall otherwise be secured by a performance bond in a manner satisfactory to the [purchasing agency.] procurement officer.

     (c)  Procurements of $25,000 to less than [$100,000] $250,000 shall be made in accordance with small purchase procedures; provided that such 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 2.  Act 175, Session Laws of Hawaii 2009, section 14, as amended by section 1 of Act 107, Session Laws of Hawaii 2010, is amended to read as follows:

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

     (1)  Part I] section 1 shall be repealed on July 1, 2012, and [sections] section 103D-102 [and 103D-305], Hawaii Revised Statutes, shall be reenacted in the form in which [they] it read on the day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

     (2)  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 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.



 

Report Title:

Procurement; Small Purchases; Electronic Procurement

 

Description:

Makes permanent the amendments made to section 103D-305, Hawaii Revised Statutes by Act 175, Session Laws of Hawaii 2009.  Amends section 103D-305, Hawaii Revised Statutes, to clarify procurement officer responsibilities; require procurements greater than $50,000 for construction to require performance and payment bonds; and require procurements of $25,000 to less than $250,000 to be made in accordance with small purchase procedures.  Effective 07/01/2050.  (SD2)

 

 

 

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