REPORT TITLE:
Disabled Procurement Programs

DESCRIPTION:
Establishes an advisory committee to determine which government
procurement contracts can be awarded to qualified community
rehabilitation programs.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2404
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO QUALIFIED COMMUNITY REHABILITATION PROGRAMS. 


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

 1      SECTION 1.  The legislature finds that it is beneficial to
 
 2 the State to continue to provide employment opportunities for
 
 3 persons with disabilities.  These employment opportunities
 
 4 minimize their dependence upon public assistance and costly
 
 5 institutionalization.  The legislature further finds that the
 
 6 process of awarding government contracts to qualified community
 
 7 rehabilitation programs, in some cases, has resulted in
 
 8 disagreements between the providers of goods or services and the
 
 9 state agency determining whether to purchase the goods and
 
10 services.  This Act is intended to provide a fair and equitable
 
11 division of contracted work, and to provide the legislature with
 
12 information that may be imperative in determining the efficiency
 
13 of the contractual process. 
 
14      SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is
 
15 amended by adding a new section to be appropriately designated
 
16 and to read as follows:
 
17      "§103D-     State advisory committee for qualified community
 
18 rehabilitation programs.  (a)  There is established within the
 
19 department of accounting and general services an ad hoc committee
 
20 to be known as the state advisory committee for qualified
 

 
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 1 community rehabilitation programs.  The committee shall consist
 
 2 of:
 
 3      (1)  Six voting members plus two alternate voting members,
 
 4           appointed by the governor as provided in section 26-34,
 
 5           without regard to section 78-4.  The voting members
 
 6           shall include three representatives, plus one
 
 7           alternate, of business and labor; and three
 
 8           representatives, plus one alternate, of disability
 
 9           advocacy groups including, but not limited to,
 
10           qualified community rehabilitation programs; and  
 
11      (2)  Pursuant to section 103D-1010(b)(1), the chief
 
12           procurement officer, or a designee, for the purchasing
 
13           agency for the goods or services subject to a meeting
 
14           of the state advisory committee for qualified community
 
15           rehabilitation programs. The chief procurement officer
 
16           or designee shall serve as an ex officio nonvoting
 
17           member of the committee.
 
18      (b)  Each member of the committee subject to appointment by
 
19 the governor under subsection (a)(1) shall serve a three-year
 
20 term but may not serve more than two consecutive full terms.
 
21      (c)  The committee members shall serve without compensation
 
22 but shall be reimbursed for reasonable expenses, including travel
 
23 expenses, necessary for the performance of their duties.
 

 
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 1      (d)  The voting committee members, including alternate
 
 2 voting members, shall elect a chairperson and vice chairperson
 
 3 from the membership of voting members.  An alternate committee
 
 4 member shall not be eligible to be elected as chairperson or vice
 
 5 chairperson.  The chairperson and vice chairperson shall serve
 
 6 for a one year term but may not serve as chairperson and vice
 
 7 chairperson for more than two consecutive full terms.  Upon a
 
 8 determination by the committee chairperson that a voting
 
 9 committee member has a conflict of interest in a matter presented
 
10 before the committee, the chairperson shall substitute the
 
11 committee member with an alternate committee member.
 
12      (e)  Upon implementation of section 103D-1010(b)(1), and
 
13      (1)  The purchasing agency is unable to conclusively
 
14           determine if the proposed goods or services by a
 
15           qualified community rehabilitation program are suitable
 
16           for purchase by the agency; or
 
17      (2)  A qualified community rehabilitation program that has
 
18           submitted a proposal to provide goods or services
 
19           informs the purchasing agency, in writing within ten
 
20           working days of the purchasing decision, that the
 
21           qualified community rehabilitation program disagrees
 
22           with the decision of the purchasing agency;
 

 
 
 
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                                     S.B. NO.           2404
                                                        
                                                        

 
 1 the purchasing agency shall contact the chairperson and request
 
 2 an ad hoc committee meeting.  Within ten business days of receipt
 
 3 of the agency's request, the chairperson shall convene an ad hoc
 
 4 committee meeting for the purpose of consulting and advising
 
 5 whether a qualified community rehabilitation program proposal is
 
 6 suitable to provide goods or services for purchase by the agency
 
 7 pursuant to section 103D-1010(b)(1).
 
 8      (f)  For each proposal subject to a committee meeting, the
 
 9 committee shall prepare and submit a report, consisting of
 
10 findings of facts and advisory recommendations, to the
 
11 administrator of the state procurement office of the department
 
12 of accounting and general services.  Upon receipt of the
 
13 committee's report, the administrator shall determine whether a
 
14 qualified community rehabilitation program proposal is suitable
 
15 for purchase by the agency under section 103D-1010(b)(1).  The
 
16 administrator's determination shall be transmitted in writing to
 
17 the committee within twenty business days of receipt of the
 
18 committee's report.
 
19      (g)  Twenty days before the convening of each regular
 
20 session, the chairperson shall prepare and submit a report to the
 
21 legislature which shall pertain to the preceding calendar year
 
22 and include the names of the committee members, the dates of
 
23 committee meetings, a summarized description of each case brought
 

 
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                                     S.B. NO.           2404
                                                        
                                                        

 
 1 before the committee with the committee's recommendations, the
 
 2 final decision by the administrator of the state procurement
 
 3 office of the department of accounting and general services, and
 
 4 a summarization of any significant issues of concern or
 
 5 impediments to the contracting process under section 103D-1010
 
 6 that arose pursuant to committee meetings."
 
 7      SECTION 3.  Section 103D-1010, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§103D-1010  Purchases from qualified community
 
10 rehabilitation programs.(a)  Any governmental body, without
 
11 advertising or calling for bids, may purchase goods or services
 
12 provided by qualified community rehabilitation programs serving
 
13 persons with disabilities that have indicated an interest in
 
14 supplying the goods or services and on an equitable basis may
 
15 apportion the business among the interested programs; provided
 
16 that the goods and services meet the specifications and needs of
 
17 the purchasing agency and are purchased at a fair market price as
 
18 determined by the [appropriate public] agency; and provided
 
19 further that the programs comply with the following: 
 
20      (1)  Meet all of the requirements of a qualified community
 
21           rehabilitation program under section 103D-1001; and 
 
22      (2)  Maintain a disabled to non-disabled employee ratio
 
23           equal to or in excess of three-to-one for work hours of
 
24           direct labor at all times on the work contracted.
 

 
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                                     S.B. NO.           2404
                                                        
                                                        

 
 1      (b)  The purchasing agency shall:
 
 2      (1)  Receive and review proposals submitted by qualified
 
 3           community rehabilitation programs to provide goods or
 
 4           services and determine if they are suitable for
 
 5           purchase by the agency; provided that if the purchasing
 
 6           agency is unable to conclusively determine the
 
 7           suitability of the purchase or if a qualified community
 
 8           rehabilitation program that has submitted a proposal
 
 9           disagrees with the purchasing agency's determination as
 
10           to which program is suitable, the suitability for
 
11           purchase shall be determined by the administrator of
 
12           the state procurement office of the department of
 
13           accounting and general services pursuant to an advisory
 
14           recommendation from the state advisory committee for
 
15           qualified community rehabilitation programs pursuant to
 
16           section 103D-   ;
 
17      (2)  Negotiate the conditions and terms for the purchase,
 
18           including the price of the offer, between the agency
 
19           and the qualified community rehabilitation program;
 
20           provided that the price of the offer shall not exceed
 
21           the fair market price and there is assurance that the
 
22           qualified community rehabilitation program proposal is
 
23           in compliance with all administrative rules related to
 
24           purchasing; and
 

 
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                                     S.B. NO.           2404
                                                        
                                                        

 
 1      (3)  Ensure that any goods or service purchased from a
 
 2           qualified community rehabilitation program shall not be
 
 3           placed on the Hawaii products list under section 103D-
 
 4           1002." 
 
 5      SECTION 4.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored. 
 
 7      Section 5.  This Act shall take effect on July 1, 2000. 
 
 8 
 
 9                       INTRODUCED BY:  ___________________________
 
10 
 
11                                       ___________________________