Report Title:

Procurement; Counties; Cooperative Purchasing

Description:

Repeals requirement that county cooperative purchases adhere to administrative rules adopted by the state procurement policy board.

HOUSE OF REPRESENTATIVES	H.B. NO.	2219
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 103D-802, Hawaii Revised Statutes, requires cooperative agreements of public procurement units of the State or counties to be regulated in accordance with administrative rules adopted by the state procurement policy board.  The legislature finds that the counties are limited by the provisions of the Hawaii Administrative Rules with respect to cooperative purchasing agreements, notwithstanding compliance with the competitive selection process.  As a result, a county may not be able to enter into a competitive contract that is the most cost-efficient choice for taxpayers.  A county is in the best position to determine for itself whether a cooperative purchase meets its particular needs, and should therefore be able to enter into such a purchase without the limitations imposed by administrative rule.

     The purpose of this Act is to repeal the requirement that cooperative purchases be regulated in accordance with administrative rules adopted by the state procurement policy board.

     SECTION 2.  Section 103D-802, Hawaii Revised Statutes, is amended to read as follows:

"§103D-802  Cooperative purchasing authorized.  A public procurement unit may either participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the procurement of goods, services, or construction with one or more public procurement units, external procurement units, or nonprofit private procurement units pursuant to [rules adopted by the policy board and] an agreement entered into between the participants.  The cooperative purchasing may include, but shall not be limited to, joint or multi-party contracts between public procurement units, and state public procurement unit requirements contracts which are made available to local public procurement units.  Cooperative purchasing agreements may be exempt from preferences pursuant to part X."

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  Statutory material to be repealed is bracketed and stricken.

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

INTRODUCED BY:

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