THE SENATE

S.B. NO.

2581

TWENTY-FIFTH LEGISLATURE, 2010

 

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 in this period of high economic turmoil, procedural changes are necessary to enable the State to achieve a quick recovery and to provide effective economic stimulation.  The legislature further finds that changes to the State's lengthy procurement process would allow state agencies to expedite the implementation or expansion of programs, services, and benefits that are instrumental to the economic success of the State.

     The purpose of this Act is to limit the amount of time within which the appropriate authority determines whether a sufficient appropriation exists and certifies contracts for projects of the department of education, the University of Hawaii, the Hawaii housing finance and development corporation, and the Hawaii public housing authority, within sixty days of award of the contract; thereby expediting the implementation of valuable programs and services provided by these agencies.  In doing so, however, it is also the purpose of this Act to strike a balance between expedited procedures and necessary accountability and transparency.

     SECTION 2.  Section 103D-309, Hawaii Revised Statutes, is amended to read as follows:

     "§103D-309  Contract not binding unless funds available.  (a)  Contracts awarded pursuant to section 103D-302, 103D‑303, or 103D-306, shall neither be binding nor have any force and effect of law unless the comptroller, the director of finance of a county, or the respective chief financial officers of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, endorses thereon a certificate that there is an appropriation or balance of an appropriation over and above all outstanding contracts, sufficient to cover the amount required by the contract; provided that if the contract is a multi-term contract, the comptroller, director of finance, or chief financial officer shall only be required to certify that there is an appropriation or balance of an appropriation over and above all outstanding contracts, that is sufficient to cover the amount required to be paid under the contract during the fiscal year or remaining portion of the fiscal year of each term of the multi-year contract; provided further that the administrator of the state procurement office shall attest in writing to any recommendation or solicitations.  This section shall not apply to any contract under which the total amount to be paid to the contractor cannot be accurately estimated at the time the contract is to be awarded, or to any contract for which consideration is in kind or forbearance, or to any contract awarded pursuant to section 103D-306 that is a one-time payment through a purchase order.

     (b)  In any contract involving not only state or county funds but supplemental funds from the federal government, this section shall be applicable only to that portion of the contract price as is payable out of state or county funds.  As to the portion of the contract price as is expressed in the contract to be payable out of federal funds, the contract shall be construed to be an agreement to pay the portion to the contractor, only out of federal funds to be received from the federal government.  This subsection shall be liberally construed so as not to hinder or impede the State in contracting for any project involving financial aid from the federal government.

     (c)  For contracts awarded pursuant to sections 103D-302 to 103D‑306 for projects of the department of education, the University of Hawaii, the Hawaii housing finance and development corporation, and the Hawaii public housing authority, if the comptroller, the director of finance of a county, or the respective chief financial officer of the department of education, the judiciary, or the legislative branches of the State or county, as the case may be, determines that there is an appropriation sufficient to cover the amount required to be paid under the contract, pursuant to subsection (a), the appropriate authority shall certify the contract within sixty days of the contract being awarded.  Upon certification, the contract shall be binding and have the force and effect of law."

     SECTION 3.  New statutory material is underscored.

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

 

INTRODUCED BY:

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Report Title:

Procurement; UH; DOE; HHFDC; HPHA; Contract Final; Sixty Days

 

Description:

Requires the appropriate authority to determine whether a sufficient appropriation exists and certify contracts for projects of the department of education, the University of Hawaii, the Hawaii housing finance and development corporation, and the Hawaii public housing authority within sixty days of award of the contract.

 

 

 

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