Bill Text: HI SB2202 | 2024 | Regular Session | Amended
Bill Title: Relating To Small Purchases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-03-19 - The committee(s) on WAL/LGO recommend(s) that the measure be deferred. [SB2202 Detail]
Download: Hawaii-2024-SB2202-Amended.html
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THE SENATE |
S.B. NO. |
2202 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO SMALL PURCHASES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that escalating costs of goods over the years, particularly during the coronavirus disease 2019 pandemic, have created numerous difficulties regarding small purchase procurement. With the tragic August 2023 wildfires on Maui and the growing frequency of earthquakes on Hawaii island, an indicator of potential devastating volcanic eruption effects on residential and commercial areas, as seen in 2018, the need to address small purchase procurements has become inescapable.
Accordingly, the purpose of this Act is to:
(1) Increase from $25,000 to $50,000 the minimum amount for purchases constituting small purchase procurements;
(2) Set at $75,000 the minimum amount for purchases constituting small purchase procurements within the affected area of a federally declared disaster; and
(3) Require the state procurement office to submit a report to the legislature on the efficacy of the increased procurement amounts for areas affected by a federally declared disaster.
SECTION 2. Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:
"§103D-305 Small purchases; prohibition against
parceling. (a)
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] Except as provided in subsection (d),
procurements of [$25,000] $50,000 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)
In an affected area of a federally declared disaster, procurements of
$75,000 to less than $250,000 shall be made in accordance with small purchase
procedures; provided that small purchase procurements through an electronic
system shall be required; provided further that procurements pursuant to this
subsection shall be reported to the state procurement office."
SECTION 3. The state procurement office shall submit a report of its findings and recommendations on the efficacy of the amendment to section 103D-305, Hawaii Revised Statutes, made by section 2 of this Act, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2025.
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
Report Title:
SPO; Hawaii Council of Mayors Package; Small Purchase Procurements; Federally Declared Disaster Areas; Report
Description:
Increases the minimum amount for purchases constituting small purchase procurements from $25,000 to $50,000. Sets a small purchase procurement minimum amount of $75,000 for federally declared disaster areas; provided that the procurements are reported to the State Procurement Office. Requires a report to the Legislature. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
