Report Title:
Hawaii Tourism Authority; Contracts; Required Provisions; Report to Legislature
Description:
Establishes required provisions to be included in contracts entered into by the Hawaii Tourism Authority, including provisions to determine rights to intellectual property, a loyalty requirement, and an allowable length of contract term. Requires HTA to report to the legislature regarding all contracts entered into for services. (SD1)
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THE SENATE |
S.B. NO. |
1460 |
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TWENTY-SECOND LEGISLATURE, 2003 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to contracts entered into by the hawaii tourism authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 201B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§201B- Service contracts; required provisions; reporting requirement. (a) To ensure accountability and efficient use of public funds expended for services related to tourism or tourism marketing or promotion, the authority shall include in each of its contracts that exceed $3,000,000 or are of a level of complexity, as determined by the executive director, that a reasonably prudent person would expect the contract to contain the following provisions:
(1) Ownership rights, copyrights, and licensing of intellectual property developed or created pursuant to the contract;
(2) Requiring loyalty and support of the authority and its policies, programs, and goals, including provisions:
(A) Prohibiting lobbying, promotional, and other activity that conflict with the programs and goals of the State or the authority;
(B) Restraining criticism or disparagement of the policies of the State or the authority;
(C) Prohibiting interference with the business relationships of the authority or any government official or government agency; and
(D) Prohibiting engaging in any activity that competes with the authority or that is contrary to the goals and programs of the authority;
(3) Prohibiting the contractor from entering into any subcontract or other agreement without the prior consent of the authority, and to prohibit subcontracts that would obligate the State to fund a project beyond the term of the contractor's contract;
(4) Implementing standards of conduct that require the contractor to act in a fiduciary capacity and to exercise reasonable care and competence in performance of the contract;
(5) Requiring confidentiality during negotiation and performance of the contract, and following completion or termination of the contract;
(6) Requiring the contractor to use its best efforts and to require good faith to fulfill contractual obligations and duties in a timely manner;
(7) Requiring payments made under the contract to be directly related to deliverables; and
(8) Establishing performance standards that detail specific goals and timelines for completion of the contract and that provide the basis for monitoring contract compliance by the authority.
(b) Notwithstanding subsection (a), if it appears in the course of negotiations of a contract that inclusion in the contract of provisions specified in subsection (a) would prevent agreement on a contract for any legitimate reason, the authority may suspend any one or all of the provisions; provided that the suspension and the reasons therefor are noted in a separate memorandum signed by the executive director and appended to the contract; and provided further that a copy of the memorandum be forwarded to the legislature within ten days.
(c) In its annual report to the legislature the authority shall provide details regarding each contract entered into using public funds and the results of those contracts, including the names of all contractors, a description of the contract, the amount of each contract, the suspension of provisions under subsection (b), and whether the performance and monitoring specifications of subsection (a)(8) have been met for the contract."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.