Bill Text: HI SB2536 | 2024 | Regular Session | Introduced
Bill Title: Relating To Procurement Preferences And Reciprocity.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2024-06-28 - Act 113, 06/27/2024 (Gov. Msg. No. 1214). [SB2536 Detail]
Download: Hawaii-2024-SB2536-Introduced.html
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THE SENATE |
S.B. NO. |
2536 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement preferences and reciprocity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that many of the State's residents who earn college degrees either leave the State or do not return due to the lack of career opportunities. Public accounting firms with offices in the State help to address these needs by offering professional career paths that allow residents to remain in the State. These public accounting firms are committed to helping residents develop the professional and technical skills necessary to succeed in the public accounting industry; however, the high cost of operating a business in Hawaii and the high cost of living makes it difficult to compete for government contracts with firms without offices in Hawaii that operate out of low-cost jurisdictions.
The legislature further finds that procurement preferences can encourage the growth and sustainability of businesses that employ Hawaii residents by providing them with a competitive advantage in government contracts. This, in turn, can lead to the creation of new jobs or the retention of existing ones and increase economic activity within the State.
Accordingly, the purpose of this Act is to:
(1) Establish a new accounting services procurement preference for certain Hawaii accounting service businesses; and
(2) Clarify that the existing reciprocity procurement preference includes offerors under section 103D-303, Hawaii Revised Statutes.
SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part X to be appropriately designated and to read as follows:
"§103D- Accounting
service businesses. (a)
In any expenditure of public funds for accounting services, the use of
Hawaii accounting service businesses shall be preferred. Where a package bid or response to a request
for proposal contains both Hawaii and non-Hawaii accounting service businesses,
for the purpose of selecting the lowest bid or purchase price only, the bid or
offer by a non-Hawaii accounting service business shall be increased by a
preference percentage of twenty per cent; provided that the Hawaii accounting
service business shall provide a self-certification that:
(1) Not
less than eighty per cent of the labor for accounting services, with respect to
time and expenses incurred, will be performed in the State by persons domiciled
in the State; and
(2) With
respect to the size of the physical location, the commercial place of business
is of sufficient capacity to accommodate every person performing accounting
services under any contract subject to chapter 103D.
(b) This section shall not apply when precluded
by federal requirements for competitive bidding or offers."
SECTION 3. Section 103D-1001, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Accounting services"
means the art of recording, classifying, and summarizing, in a significant
manner and in terms of money, transactions and events that are, at least in
part, of a financial character, and interpreting the results. "Accounting services" shall include
assurance services, such as the performance of an audit.
"Commercial place of business"
means a physical location in the State, such as an office, suite, unit, where
business is regularly conducted. A
"commercial place of business" shall not include a dwelling or any
physical location in which a person resides or a physical location being used
for business purposes in violation of the applicable land use or zoning laws.
"Hawaii accounting service business" means any person, agency, corporation, or other business entity engaged in the business of accounting services with a commercial place of business located in the State."
SECTION 4. Section 103D-1004, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) To ensure fair and open competition for Hawaii businesses engaged in contracting with other states, the chief procurement officer may impose a reciprocal preference against bidders and offerors pursuant to sections 103D-302 and 103D-303 from those states which apply preferences. The amount of the reciprocal preference shall be equal to the amount by which the non-resident preference exceeds any preference applied by this State.
In determining whether
a bidder or offeror qualifies as a resident bidder[,] or
offeror, the definition used by the other state in applying a preference
shall apply."
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.
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INTRODUCED BY: |
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Report Title:
Accounting Service Businesses; Procurement Preferences; Reciprocity; Definitions
Description:
Establishes
a new accounting services procurement preference for certain Hawaii accounting
service businesses. Clarifies that the
existing reciprocity procurement preference includes offerors under section
103D-303, HRS.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
