SB1929

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:

"§103D‑ Authority to assess an administrative fine. (a) After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the chief procurement officer, after consultation with the using agency and the attorney general or corporation counsel, may render a written decision or issue a written order providing for the assessment of an administrative fine.

(b) The authority to assess an administrative fine shall be exercised in accordance with the rules adopted by the policy board and shall be applied to violations as determined by the policy board pursuant to section 103D‑202.

(c) A written decision or written order under this section shall be final and conclusive, unless the person assessed the administrative fine commences an administrative proceeding under section 103D-709."

SECTION 2. Section 103D-202, Hawaii Revised Statutes, is amended to read as follows:

"§103D-202 Authority and duties of the policy board. (a) Except as otherwise provided in this chapter, the policy board shall [~~have the authority and responsibility to~~] adopt rules[~~, consistent with this chapter,~~] governing [~~the~~]:

(1) The procurement, management, control, and disposal of any and all goods, services, and construction[.]; and

(2) The assessment and collection of administrative fines.

(b) All rules shall be adopted in accordance with chapter 91; provided that the policy board [~~shall have the power to~~] may issue interim rules by procurement directives, which shall be exempt from the public notice, public hearing, and gubernatorial approval requirements of chapter 91. The interim rules shall be effective for not more than eighteen months.

(1) Consider and decide matters of policy [~~within the scope of this chapter~~], including those referred to it by a chief procurement officer[~~. The policy board shall have the power to audit~~];

(2) Audit and monitor the implementation of its rules and [~~the requirements of~~] this chapter, [~~but shall not exercise authority over~~] except for the award or administration of any particular contract, or [~~over~~] any dispute, claim, or litigation pertaining [~~thereto.~~] to the award or administration of any particular contract; and

(3) Set administrative fines for the violations of its rules and this chapter it deems necessary and proper."

SECTION 3. Section 103D-704, Hawaii Revised Statutes, is amended to read as follows:

"§103D-704 Exclusivity of remedies. The procedures and remedies provided for in this part, and the rules adopted by the policy board, shall be the exclusive means available for persons aggrieved in connection with the solicitation or award of a contract, a suspension or debarment proceeding, the assessment of an administrative fine, or in connection with a contract controversy, to resolve their claims or differences. The contested case proceedings set out in chapter 91 shall not apply to protested solicitations and awards, debarments or suspensions, the assessment of an administrative fine, or the resolution of contract controversies."

SECTION 4. Section 103D-709, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The several hearings officers appointed by the director of [~~the department of~~] commerce and consumer affairs pursuant to section 26-9(f) [~~shall have jurisdiction to~~] may review and determine de novo any request from any bidder, offeror, contractor, or governmental body aggrieved by a determination of the chief procurement officer, head of a purchasing agency, or a designee of either officer under sections 103D-310, 103D-701, [or] 103D-702[.], or 103D‑ ."

2. By amending subsection (c) to read:

"(c) Only parties to the protest made and decided pursuant to sections 103D-310(b), 103D-701, 103D-702(g), 103D-709(a), [~~103D-310(b), and [103D-702(g)]~~] and 103D‑ may initiate a proceeding under this section. The party initiating the proceeding shall have the burden of proof, including the burden of producing evidence [~~as well as~~] and the burden of persuasion. The degree or quantum of proof shall be a preponderance of the evidence. All parties to the proceeding shall be afforded an opportunity to present oral or documentary evidence, conduct cross-examination as may be required, and argument on all issues involved. The rules of evidence shall apply."

SECTION 5. Section 103D-712, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Requests for administrative review under section 103D-709 shall be made directly to the office of administrative hearings of the department of commerce and consumer affairs within seven calendar days of the issuance of a written determination under section 103D-310, 103D-701, [or] 103D-702[.], or 103D- ."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1929
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII