THE SENATE	S.B. NO.	2385
THIRTY-FIRST LEGISLATURE, 2022		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROCUREMENT.

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

SECTION 1. The legislature finds that the procurement of professional services under section 103D-304, Hawaii Revised Statutes, currently requires a selection committee to rank a minimum of three persons based on the selection criteria and send the ranking to the head of the purchasing agency to begin negotiations. This requirement was upheld in Asato v. Procurement Policy Board, 322 P.3d 228 (Haw. S. Ct. 2014).

However, the legislature further finds that when an agency seeks to procure professional services and does not receive the requisite minimum of three responses, it must continue to re-solicit, expending additional time and resources to fulfill the solicitation. An alternate procurement approval process would increase efficiency and facilitate the procurement of specialized professional services by allowing procuring agencies to timely procure needed professional services in situations where the agency receives less than three bids or proposals from qualified persons.

Accordingly, the purpose of this Act is to allow agencies procuring professional services to request an exemption from chapter 103D, Hawaii Revised Statutes, if fewer than three qualified persons submit statements of qualifications.

SECTION 2. Section 103D-304, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (g) to read:

"(g) The selection committee shall rank a minimum of three persons based on the selection criteria and send the ranking to the head of the purchasing agency[.] The contract file shall contain a copy of the summary of qualifications for the ranking of each of the persons provided to the head of the purchasing agency for contract negotiations. If more than one person holds the same qualifications under this section, the selection committee shall rank the persons in a manner that ensures equal distribution of contracts among the persons holding the same qualifications. The recommendations of the selection committee shall not be overturned without due cause.

If fewer than three persons submit statements of qualifications, the agency may make a request for an exemption pursuant to section 103D-102(b)(4)(L)."

2. By amending subsection (j) to read:

"(j) Contracts for professional services [of less than] within the limits in section 103D-305[,] may be negotiated by the head of the purchasing agency, or designee, with at least any two persons on the list of qualified persons established pursuant to subsection (c). Negotiations shall be conducted in the manner set forth in subsection (h), with ranking based on the selection criteria of subsection (e) as determined by the head of the agency."

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, 2050.

Report Title:

Procurement; Professional Services; Exemption

Description:

Allows agencies procuring professional services to request an exemption from Chapter 103D, HRS, if fewer than 3 qualified persons submit statements of qualifications. Effective 7/1/2050. (SD2)

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