THE SENATE	S.B. NO.	2470
TWENTY-NINTH LEGISLATURE, 2018
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-305, Hawaii Revised Statutes, is amended to read as follows:

"§103D-305 Small purchases; prohibition against parceling. (a) [Procurements] Except as provided in subsection (d), procurements of less than $100,000 for goods or services, or $250,000 for construction 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 greater than $50,000 for construction under subsection (a) shall require security by performance and payment bonds, pursuant to section 103D-324, delivered to the procurement officer, that are:

(1) In a form prescribed by the rules of the policy board;

(2) Executed by a surety company authorized to do business in this State; and

(3) In an amount equal to one hundred per cent of the price specified in the contract,

or shall otherwise be secured by a performance bond in a manner satisfactory to the procurement officer.

(c) Procurements of $25,000 to less than $250,000 shall be made in accordance with small purchase procedures; provided that such small purchase procurements through an electronic system shall be required.

(d) 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 of accounting and general services' website; 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. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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 Statutory material to be repealed is bracketed and stricken.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

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

INTRODUCED BY:

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Report Title:

Hawaii Public Procurement Code; Small Purchases; Construction; Drilling Work; Soil Testing

Description:

Requires competitive bidding on construction procurements of less than $50,000 to contract for drilling work and soil testing. Requires that the bid for drilling work and soil testing be separate from a bid for engineering work on the same project.

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