THE SENATE

S.B. NO.

1012

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE AWARD OF CONTRACTS UNDER CHAPTER 103F.

 

 

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

 


     SECTION 1.  The purpose of this bill is to align Hawaii's laws regarding the procurement of health or human services, chapter 103F, Hawaii Revised Statutes, with the Hawaii Supreme Court's decisions in Alakai Na Keiki v. Matayoshi, 127 Hawaii 263, 277 P.3d 988 (2012), and AlohaCare v. Dep't of Human Services, 127 Hawaii 76, 276 P.3d 625 (2012).  In these two cases, particularly Alakai, the Hawaii supreme court determined that the existing protest process in sections 103F-501 to 103F-504, Hawaii Revised Statutes, violated the doctrine of separation of powers because the executive branch agency was exercising "judicial" or adjudicatory authority. 

     It is the intent of this bill to amend chapter 103F to remove any exercise of "judicial" or adjudicatory authority by the agency in awarding contracts under chapter 103F, Hawaii Revised Statutes.  By doing so, the executive branch agency will not be exercising "judicial" power, and thus will avoid the separation of powers concerns addressed in Alakai and AlohaCare.

     When chapter 103F, Hawaii Revised Statutes, was enacted, it was the intent of the legislature to create a simpler, more streamlined process to finalize contract awards for critical services.  The legislature reaffirms this purpose now.  Health or human services procurement contracts for critical services should not be subject to lengthy disputes about contract awards. 

     This Act repeals the existing protest process in chapter 103F, Hawaii Revised Statutes, and replaces it with a process by which the executive agency shall award health or human services procurement contracts without exercising any judicial or adjudicatory authority, in line with the Hawaii supreme court's recent rulings.

     SECTION 2.  Chapter 103F, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART   .  AWARD OF CONTRACT

     §103F-   Staff recommendation.  After reviewing bids, proposals, or submissions from prospective contractors under this chapter, the purchasing agency shall, through an appropriate division, branch, or personnel, prepare a written staff recommendation regarding the award of the contract.  This staff recommendation shall be forwarded to the head of the purchasing agency or a designee and, at that time, made available to the public.  The written staff recommendation is not binding and shall not be construed as a decision of the agency.

     §103F-   Public comments.  Any person may submit comments to the head of the purchasing agency or a designee about the staff recommendation regarding the contract award within thirty days after the recommendation has been made available to the public.  The head of the purchasing agency or a designee shall receive the comments but need not respond to the comments submitted.

     §103F-    Contract award.  The head of the purchasing agency or a designee shall award the contract no earlier than five days after the thirty-day public comment period has closed.  This award shall constitute the decision of the agency.  If appropriate, the head of the purchasing agency may request another written staff recommendation before awarding the contract.  An additional comment period shall be provided if a new written staff recommendation is requested by the head of the purchasing agency.

     §103F-   Conclusiveness of award.  The award of the contract by the head of the purchasing agency or a designee is final and conclusive.  There shall be no protest or judicial review of the award of a contract under this chapter."

     SECTION 3.  Chapter 103F, Hawaii Revised Statutes, is amended by adding to part IV a new section to be appropriately numbered and to read as follows:

     "§103F-   Awards of contracts under this chapter.  All contracts awarded under this chapter shall be governed by part       of this chapter."

     SECTION 4.  Chapter 103F, part V, Hawaii Revised Statutes, is repealed. 

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Health and Human Services; Purchases

 

Description:

Repeals the existing protest procedures in chapter 103F, Hawaii Revised Statutes, and replaces them with a procedure governing the award of health and human services contracts that will not involve the exercise of adjudicatory authority by the executive branch agency in order to bring chapter 103F into compliance with recent decisions by the Hawaii Supreme Court.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.