THE SENATE	S.B. NO.	763
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to STREAMLINING PROCUREMENT.

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

     SECTION 1.  Senate Concurrent Resolution No. 132, S.D. 1 (2009), established a task force to determine the economic contributions of the construction industry in Hawaii and to develop a series of proposals for state actions to preserve and create new jobs in the local construction industry.  This Act implements one of the task force's proposals in conjunction with the Abercrombie administration's support for state actions to create new jobs in Hawaii's construction industry.

     In addition, in 2010, the senate committee on economic development and technology and the house committee on economic revitalization, business, and military affairs convened an informal small business discussion group to address the most critical issues facing the small business sectors within Hawaii's economy.  Representatives from the Chamber of Commerce of Hawaii, construction and trades industries, community nonprofits, the agricultural sector, food and restaurant industries, retailing, the science and technology sector, the commercial transportation industry, and interested stakeholders developed a package of bills that address the most pressing problems facing Hawaii's small business community.

     The purpose of this Act is to support the findings of the small business working group and the recommendations proposed by the construction industry task force by amending chapter 103D, Hawaii Revised Statutes, to require certain state agencies to award public contracts on bid proposals within thirty days of the bid opening date.  In doing so, however, it is also the purpose of this part to strike a balance between expedited procedures and necessary accountability and transparency.

     SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§103D‑   Contract award deadlines. Notwithstanding any other statute or administrative rule relating to procurement, contracts for projects of the department of Hawaiian home lands and department of transportation that are awarded after bidding shall be awarded within thirty days of the bid opening date; provided that:

(1) An extension, not exceeding fourteen business days, shall be permitted if it will provide the opportunity for further negotiations with the lowest responsible bidder relating to considerations that could result in benefits to the public;

(2) Contracts for design professional services furnished by persons licensed under chapter 464 shall be awarded within forty-five days of the bid opening date;

(3) The award deadline shall not apply if the lowest responsible bid exceeds available funding; and

(4) The award deadline shall not apply to design-build contracts.

For the purposes of this section "design-build" means the combining of design and construction into a single request for proposal."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2011, and shall be repealed on June 30, 2013.

INTRODUCED BY:

_____________________________

Report Title:

Construction Task Force (2010); Procurement; 30-Day Contract Award Deadline; Gifts to the State

Description:

Requires contracts for DHHL and DOT projects to be awarded within 30 days of the bid opening date, subject to sufficient available funding and an extension for further negotiations to benefit the public; requires DHHL and DOT contracts for design professional services to be awarded within 45 days of the bid opening date; sunsets on June 30, 2013.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.