REPORT TITLE:
Procurement Code


DESCRIPTION:
Exempts contracts for legal services outside Hawaii from the
requirements of the state procurement code. Makes other
amendments to the state procurement code. (SB1117 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1117
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 2
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE.



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

 1      SECTION 1.  Section 103D-102, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  Notwithstanding subsection (a), this chapter shall not
 
 4 apply to contracts by governmental bodies:
 
 5      (1)  Solicited or entered into before July 1, 1994, unless
 
 6           the parties agree to its application to a contract
 
 7           solicited or entered into prior to July 1, 1994;
 
 8      (2)  To disburse funds, irrespective of their source:
 
 9           (A)  For grants[,] or subsidies[, or purchases of
 
10                services] as those terms are defined in section
 
11                [42D-1, made] 42F-101 made by the State in
 
12                accordance with standards provided by law as
 
13                required by article VII, section 4, of the State
 
14                Constitution; or by the counties pursuant to their
 
15                respective charters or ordinances;
 
16           (B)  To make payments to or on behalf of public
 
17                officers and employees for salaries, fringe
 
18                benefits, professional fees, or reimbursements;
 
19           (C)  To satisfy obligations that the State is required
 
20                to pay by law, including paying fees, permanent
 

 
Page 2                                                     1117
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1                settlements, subsidies, or other claims, making
 
 2                refunds, and returning funds held by the State as
 
 3                trustee, custodian, or bailee;
 
 4           (D)  For entitlement programs, including public
 
 5                assistance, unemployment, and workers'
 
 6                compensation programs, established by state or
 
 7                federal law;
 
 8           (E)  For dues and fees of organizations of which the
 
 9                State or its officers and employees are members,
 
10                including the National Association of Governors,
 
11                the National Association of State and County
 
12                Governments, and the Multi-State Tax Commission;
 
13           (F)  For deposit, investment, or safekeeping, including
 
14                expenses related to their deposit, investment, or
 
15                safekeeping;
 
16           (G)  To governmental bodies of the State; [and]
 
17           (H)  As loans, under loan programs administered by a
 
18                governmental body; and
 
19           (I)  For contracts awarded in accordance with the
 
20                provisions of chapter 103F;
 
21      (3)  To procure goods, services, or construction from a
 
22           governmental body other than the University of Hawaii
 
23           bookstores, from the federal government, or from
 

 
Page 3                                                     1117
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           another state or its political subdivision; [provided
 
 2           that University of Hawaii departments and programs,
 
 3           without regard to this chapter, may procure goods and
 
 4           services from the University of Hawaii bookstores that
 
 5           are routinely stocked and marketed and not specially
 
 6           ordered;
 
 7      (4)  To procure goods or services for the office of
 
 8           intercollegiate athletics of the University of Hawaii
 
 9           at Manoa with moneys from the University of Hawaii at
 
10           Manoa intercollegiate athletics revolving fund;
 
11      (5)] (4)  To procure the following goods or services,
 
12           [including the following:] which are available from
 
13           multiple sources but for which procurement by
 
14           competitive means is either not practicable or not
 
15           advantageous to the State:
 
16           (A)  Services of expert witnesses for potential and
 
17                actual litigation of legal matters involving the
 
18                State, its agencies, and its officers and
 
19                employees, including administrative quasi-judicial
 
20                proceedings;
 
21           (B)  Works of art for museum or public display;
 
22           (C)  Research and reference materials including books,
 
23                maps, periodicals, [and] or pamphlets, which are
 

 
Page 4                                                     1117
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1                published in print, video, audio, magnetic, or
 
 2                electronic form;
 
 3           (D)  Meats and foodstuffs for the Kalaupapa settlement;
 
 4           (E)  Opponents for athletic contests;
 
 5           (F)  Utility services whose rates or prices are fixed
 
 6                by regulatory processes or agencies;
 
 7           (G)  Performances, including entertainment, speeches,
 
 8                and cultural and artistic presentations;
 
 9           (H)  Goods and services for commercial resale by the
 
10                State;
 
11           (I)  Services of printers, rating agencies, support
 
12                facilities, fiscal and paying agents, and
 
13                registrars for the issuance and sale of the
 
14                State's or counties' bonds; [and]
 
15           (J)  Travel arrangements purchased by the University of
 
16                Hawaii for its intercollegiate athletic programs;
 
17           [which the policy office determines by rule or the
 
18           chief procurement officer determines in writing is
 
19           available from multiple sources but for which
 
20           procurement by competitive means is either not
 
21           practicable or not advantageous to the State; and]
 
22           (K)  Services of attorneys employed or retained to
 
23                advise, represent, or provide any other legal
 
24                service to the State or any of its agencies, on
 

 
Page 5                                                     1117
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1                matters arising under laws of another state or
 
 2                foreign country, or in an action brought in such
 
 3                jurisdictions, when substantially all legal
 
 4                services are expected to be performed outside this
 
 5                state; and
 
 6           (L)  Any other goods or services that the policy board
 
 7                determines by rules or the chief procurement
 
 8                officer determines in writing are available from
 
 9                multiple sources but for which procurement by
 
10                competitive means is either not practicable or not
 
11                advantageous to the State;
 
12           and
 
13     [(6)] (5)  Which are specific procurements expressly exempt
 
14           from any or all of the requirements of this chapter by:
 
15           (A)  References in state or federal law to provisions
 
16                of this chapter or a section of this chapter, or
 
17                references to a particular requirement of this
 
18                chapter; and
 
19           (B)  Trade agreements, including the Uruguay Round
 
20                General Agreement on Tariffs and Trade (GATT),
 
21                which require certain non-construction and non-
 
22                software development procurements by the
 
23                comptroller to be conducted in accordance with its
 
24                terms."
 

 
Page 6                                                     1117
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1     SECTION 2.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3     SECTION 3.  This Act shall take effect on July 30, 2001.