Report Title:

Public Procurement Code; Small Purchases; Construction

Description:

Requires competitive bidding on small purchases of construction contracts for drilling and soil testing.

HOUSE OF REPRESENTATIVES	H.B. NO.	2582
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to the public procurement code.

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

     SECTION 1.  Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:

     "§103D-305  Small purchases; prohibition against parceling.  (a)  Procurements of less than $50,000 for goods, services, or construction, except as provided in subsection (c), 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 of $25,000 to less than $50,000 shall be made in accordance with small purchase procedures; provided that small purchase procurements through an electronic system shall be required after the policy board has adopted rules for electronic procurement and provided training to the affected agency.

(c)  Construction procurements of less than $50,000 to contract for drilling work and soil testing shall be made by competitive sealed bid; provided that the bid request shall be advertised to the public on the department's website; and provided further that the bid for drilling and soil testing shall be separate from a bid for the engineering work on the same project."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on October 1, 2008.

INTRODUCED BY:

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