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THE SENATE |
S.C.R. NO. |
106 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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RESOLUTION
CONVENING A JOINT LEGISLATIVE TASK FORCE TO REVIEW AND MAKE RECOMMENDATIONS CONCERNING THE HAWAII PUBLIC PROCUREMENT CODE.
WHEREAS, chapter 103D, Hawaii Revised Statutes, relating to the Hawaii Public Procurement Code (Code), was enacted by Act 8, Session Laws of Hawaii Special Session 1993; and
WHEREAS, the justification in part for the enactment of chapter 103D, Hawaii Revised Statutes, as stated in section 1 of Act 8, was "to ensure the fair and equitable treatment of all persons who deal with the procurement system of the State and counties ... to assure fair competitive access to governmental procurement by responsible contractors"; and
WHEREAS, section 1 of Act 8 makes the declaration that "It is the policy of the State to foster broad-based competition. Full and open competition shall be encouraged. With competition, the State and counties will benefit economically with lowered costs"; and
WHEREAS, notwithstanding the justification and policy declaration for the Code, as stated above, there are currently ten statutory exemptions for various agencies and functions as follows:
(1) Civil defense and emergency functions under section 128-10, HRS;
(2) Purchases made after a stevedore labor dispute emergency proclamation by the Governor under section 282-3, HRS;
(3) Publication of notice by a government agency under section 1-28.5, HRS;
(4) Competitive bidding for financing agreements under section 37D-2, HRS;
(5) Competitive bidding by the Hawaii Tourism Authority under section 201B-12, HRS;
(6) Hawaii Hurricane Relief Fund under section 431P-16, HRS;
(7) New Century Charter Schools under section 302A-1184, HRS;
(8) Research Corporation of the University of Hawaii under section 307-4, HRS;
(9) Legislative Reference Bureau for printing of laws under section 23G-17, HRS; and
(10) Civil defense functions under section 128-13, HRS;
and
WHEREAS, in addition to the statutory exemptions, the administratively granted exemptions pursuant to sections 103D-102(b)(4)(L) and 3-120-4, Hawaii Administrative Rules, are as follows:
(1) Research, reference, and educational materials, including books, maps, periodicals and pamphlets, which are published or available in print, video, audio, magnetic, or electronic form, including web-based databases;
(2) Services of printers, rating agencies, support facility providers, fiscal and paying agents,
and registrars for the issuance and sale of the State's or counties' bonds;
(3) Services of lecturers, speakers, trainers, and scriptwriters;
(4) Services of legal counsel, guardian ad litem, psychiatrists, and psychologists, when required by court order, or by the Rules of Court in the case of interpreters, in criminal and civil proceedings;
(5) Fresh meats and produce;
(6) Insurance to include insurance broker services;
(7) Animals and plants;
(8) New or used items that are advantageous and available on short notice through an auction, bankruptcy, foreclosure, etc.;
(9) Food and fodder for animals;
(10) Facility costs for conferences, meetings, and training sessions;
(11) Advertisements in specialized publications, such as in ethnic or foreign language publications, trade publications, professional publications;
(12) Professional consultant services as required under chapter 658, Hawaii Revised Statutes (arbitration);
(13) Interpreter services;
(14) Procurement of repair services when dismantling is required to assess the extent of repairs;
(15) Burial services consisting of mortuary, crematory, cemetery, and other essential services for deceased indigent persons or unclaimed corpses; and
(16) Radio and television airtime when selection of station is to be made by current audience demographics;
and
WHEREAS, some of the exemptions may be warranted but many may not be warranted or justified; and
WHEREAS, an abundance of exemptions has the effect of defeating the intent of the Legislature and the purpose of chapter 103D, Hawaii Revised Statutes, to create a government purchasing system that is uniform, fair, and comprehensive, so that there is an even playing field for all contractors and providers; and
WHEREAS, the justification often cited for an exemption to the Code is that due to the cumbersome and time-consuming requirements of the Code, the ability of agencies to fully exercise their ability to attract, negotiate, and make financial commitments with potential contributors to the State's economy is hindered, and thus flexibility should be granted; and
WHEREAS, whether by exemptions or by revision to chapter 103D, HRS, the aim should still be to maintain equity and fairness in granting exemptions so that the Code is applied uniformly and fairly; and
WHEREAS, a joint legislative task force should be formed to review the exemptions to chapter 103D, HRS, as well as administrative exemptions, for possible repeal, and to recommend amendments to provisions of chapter 103D, HRS, as appropriate; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the President of the Senate and the Speaker of the House of Representatives are requested to convene a joint task force, exempt from chapter 92, HRS, with no more than six members from each house, during the 2005-2006 interim, whose members are familiar with the state procurement code; and
BE IT FURTHER RESOLVED that the Senate President will name one of the Senate members as co-chair of the task force and the Speaker of the House of Representatives will name one of the House of Representatives members as co-chair; and
BE IT FURTHER RESOLVED that the task force is requested to review the concerns raised by the University of Hawaii, Natural Energy Laboratory of Hawaii Authority, High Technology Development Corporation, Hawaii Strategic Development Corporation, Hawaii Health Systems Corporation, and the counties; and
BE IT FURTHER RESOLVED that the task force is requested to review the statutory exemptions to chapter 103D, HRS, as well as administrative exemptions, for possible repeal, and recommend amendments to provisions of chapter 103D, HRS, as appropriate, to minimize the cumbersome and time-consuming procurement requirements and allow for more purchasing flexibility while maintaining the integrity and intent of the procurement code to protect the public's interest; and
BE IT FURTHER RESOLVED that the Comptroller, State Procurement Administrator, the Director of the Hawaii Procurement Institute and persons currently active in federal and county procurement are requested to assist the task force; and
BE IT FURTHER RESOLVED that the task force is requested to report its findings and recommendations, including any necessary legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2006; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Comptroller, President of the University of Hawaii, Director of the Hawaii Procurement Institute, Executive Director of the Natural Energy Laboratory of Hawaii Authority, Executive Director of the High Technology Development Corporation, President of the Hawaii Strategic Development Corporation, Executive Officer of the Hawaii Health Systems Corporation, the Mayor of each county, and the State Procurement Administrator.
Report Title:
Procurement Exemptions; Joint Legislative Task Force