Exempts the department of business, economic development, and tourism and certain administratively attached agencies from the state procurement code.

A BILL FOR AN ACT

SECTION 1. The legislature finds that in the fast paced world of the twenty-first century, the ability to capitalize on ideas in a timely manner is essential to not only economic success, but economic survival as well. The legislature also finds that the purpose of the department of business, economic development, and tourism and its attached agencies that are responsible for economic and technological growth is to promote and nurture the growth of the State's economy through the support of its existing and fledgling industries.

The legislature believes that in order to compete in the global marketplace, the functionings of the department of business, economic development, and tourism and its attached agencies that are responsible for economic and technological growth need to be agile and responsive so that these agencies may be able to attract as many desirable economic growth opportunities to the State as possible.

To this end, the legislature further finds that, due to the cumbersome and time-consuming requirements of the State's procurement code, codified as chapter 103D, Hawaii Revised Statutes, the ability of these agencies to fully exercise their ability to attract, negotiate, and make financial commitments with potential contributors to the State's economy is hindered.

As such, the legislature finds it necessary to provide the department of business, economic development, and tourism and its attached agencies that are responsible for economic and technological growth with the procurement flexibility requisite to achieving their mandated purpose.

The purpose of this Act is to provide the department of business, economic development and tourism, in certain circumstances, and its attached agencies that are responsible for economic and technological growth with an exemption from chapter 103D, Hawaii Revised Statutes.

SECTION 2. Section 201-85, Hawaii Revised Statutes, is amended to read as follows:

"§201-85 Exemptions. The department is authorized to hire employees necessary to staff its out-of-state offices subject to chapter 76 and legislative appropriations. The department may also appoint such other employees exempt from chapter 76 as may be necessary to administer the affairs of its out-of-state offices. The initial appointment shall not exceed three years, during which time the department shall submit to the legislature a request for approval prior to continuation of the position. The department shall set the duties, responsibilities, salaries, holidays, vacations, leaves, hours of work, and working conditions for these employees. Subject to the approval of the director of budget and finance, the department may be exempted from the following state laws only to the extent necessary for the conduct of its business in operating out-of-state offices:

All moneys necessary for the establishment and operation of out-of-state offices shall be allocated by the legislature through appropriations out of the state general fund. The department shall include in its budgetary request for each upcoming fiscal period, the amounts necessary to effectuate the purposes of this section."

SECTION 3. Section 201G-13, Hawaii Revised Statutes, is amended to read as follows:

"§201G-13 Development of property; additional powers. Notwithstanding any provision to the contrary, whenever the bids submitted for any development or rehabilitation project authorized pursuant to subparts A, B, G, and H of part II exceed the amount of funds available for that project, the corporation, with the approval of the governor, may disregard the bids and enter into an agreement to carry out the project, or undertake the project or participate in the project under the agreement[;], without regard to chapter 103D; provided that the total cost of the agreement and the corporation's participation, if any, shall not exceed the amount of funds available for the project; provided further that if the agreement is with a nonbidder, the scope of the project under agreement shall remain the same as that for which bids were originally requested."

SECTION 4. Section 201G-114, Hawaii Revised Statutes, is amended to read as follows:

"§201G-114 Additional powers; development. Notwithstanding and without compliance with section 103-7 and chapter 103D but with the approval of the governor, the corporation may enter into and carry out agreements and undertake projects or participate in projects authorized by this chapter. The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred upon it by part I and any other law, and nothing herein shall be construed as limiting any powers, rights, privileges, or immunities so conferred upon it."

SECTION 5. Section 201G-455, Hawaii Revised Statutes, is amended to read as follows:

"§201G-455 Program administration. To the extent that appropriations are made available, the corporation may contract with a provider agency to administer homeless facilities, or any other program for the homeless created by this part. The selection of provider agencies to administer homeless facilities, or any other program for the homeless authorized by this part, shall not be subject to chapters 42F, 102, 103, 103D, and 103F. The selection of provider agencies shall be subject to qualifying standards and criteria established by rule."

SECTION 6. Section 206E-182, Hawaii Revised Statutes, is amended to read as follows:

"§206E-182 Powers. In addition and supplemental to the powers granted to the authority by law, the authority may:

SECTION 7. Section 206M-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The corporation shall be exempt from [chapter] chapters 102[.] and 103D."

SECTION 8. Section 206M-42, Hawaii Revised Statutes, is amended to read as follows:

"§206M-42 Powers. In addition to any other powers granted to the development corporation by law, the development corporation may:

SECTION 9. Section 227D-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall not be subject to any requirement of law for competitive bidding, including the requirements of [chapter] chapters 103 and 103D for project agreements, construction contracts, retail concession or tour-related contracts, or other contracts unless a project agreement with respect to a project or research and technology park shall require otherwise."

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval.