Report Title:
Procurement; Bid Ceiling Limit
Description:
Raises the ceiling for construction contract bid security requirements from $25,000 to $50,000. (HB1768 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1768 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103D-323, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Unless the policy board determines
otherwise by rules, bid security shall be required only for construction
contracts to be awarded pursuant to sections 103D-302 and 103D‑303 and
when the price of the contract is estimated by the procurement officer to
exceed [$25,000] the limits of section 103D-305, or, if the
contract is for goods or services, the purchasing agency secures the approval
of the chief procurement officer. Bid security shall be a bond provided by a
surety company authorized to do business in the [State,] state,
or the equivalent in cash, or otherwise supplied in a form specified in rules."
SECTION 2. Section 103D-324, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Unless the policy board determines
otherwise by rules, the following bonds or security shall be delivered to the
purchasing agency and shall become binding on the parties upon the execution of
the contract if the contract which is awarded exceeds [$25,000] the
limits of section 103D-305 and is for construction, or the purchasing
agency secures the approval of the chief procurement officer:
(1) A performance bond in a form prescribed by the
rules of the policy board, executed by a surety company authorized to do
business in this [State] state or otherwise secured in a manner
satisfactory to the purchasing agency, in an amount equal to one hundred per
cent of the price specified in the contract;
(2) A payment bond in a form prescribed by the rules
of the policy board, executed by a surety company authorized to do business in
this [State] state or otherwise secured in a manner satisfactory
to the purchasing agency, for the protection of all persons supplying labor and
material to the contractor for the performance of the work provided for in the
contract. The bond shall be in an amount equal to one hundred per cent of the
price specified in the contract; or
(3) A performance and payment bond which satisfies all of the requirements of paragraphs (1) and (2)."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2009 and shall be repealed on July 1, 2012; provided that sections 103D-323(a) and 103D-324(a), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.