Bill Text: HI SB1391 | 2021 | Regular Session | Amended
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Engrossed - Dead) 2021-03-19 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Todd excused (1). [SB1391 Detail]
Download: Hawaii-2021-SB1391-Amended.html
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THE SENATE |
S.B. NO. |
1391 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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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. The legislature finds that a fundamental objective of the State's procurement practices and procedures is to control and, where possible, appropriately minimize costs to the State and counties, including both immediate and future costs. The procurement of goods, services, and construction by the State and counties can materially affect the ongoing "life‑cycle" operating and maintenance costs of the State and counties.
The legislature further finds that although existing law encourages the consideration of ongoing life-cycle costs to promote energy efficiency, it neither requires nor effectively provides for the full and effective accounting and consideration of life-cycle operation and maintenance costs in procurement practices and procedures. Full and effective accounting and consideration of life-cycle costs in the procurement of goods, services, and construction is critical to ensure the economic management of the State's financial resources.
The purpose of this Act is to authorize the procurement policy board to adopt specific rules that require the consideration of life-cycle costs in all state procurements.
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Life-cycle costs" means the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs, over the lifetime of the project, product, or measure."
SECTION 3. Section 103D-211, Hawaii Revised Statutes, is amended to read as follows:
"§103D-211 Procurement rules. (a) The procurement policy board shall adopt all rules necessary to carry out the purposes of this chapter and to implement its provisions in accordance with chapter 91. The policy board shall not delegate its power to adopt rules.
(b) No rule shall change any commitment, right, or obligation of the State or of a contractor under a contract in existence on the effective date of such rule.
(c) The procurement policy board may adopt and, as
necessary, amend rules to:
(1) Provide standards
and procedures for the effective consideration of expected operation, maintenance,
disposal, and any other directly-induced costs, including:
(A) The
determination of which types of procurements shall require an analysis and identification
of life-cycle costs used in bid evaluation;
(B) The
specification of methods for the determination of life‑cycle costs used in
bid evaluation; and
(C) The
specification of criteria and methods for appropriate weighing of life-cycle costs
in bid evaluation; and
(2) Ensure that modifications
to the contracts or specifications for procurements, including any value engineering
provisions in accordance with section 103D-411, do not result in net increases
to the total costs, including immediate or future operating, maintenance, disposal,
or any other directly-induced costs associated with the procured goods, services,
or construction to the State or counties."
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2112.
Report Title:
Procurement Policy Board; Procurement Rules; Life-cycle Costs
Description:
Authorizes the procurement policy board to adopt specific rules relating to life-cycle cost analysis. Effective 7/1/2112. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
