Raises small purchases limit from $25,000 to $50,000; requires small purchases to be transacted over the Internet; requires selection of bidders from pre-qualified lists of vendors. (SD1)

A BILL FOR AN ACT

SECTION 1. The purpose of this Act is to raise the small purchases threshold from $25,000 to $50,000, which would put the amount more congruent with the reality of the costs of goods, services, and construction.

SECTION 2. Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:

"§103D-305 Small purchases; prohibition against parceling. (a) Procurements of less than [$25,000] $50,000 for goods, services, or construction shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section.

(b) Procurements under this section shall:

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.