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H.B. NO.












SECTION 1. Chapter 102, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"102- Competitive sealed proposals. (a) Competitive sealed proposals may be utilized to enter into concession contracts when the head of a government agency awarding the concession determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the awarding government agency. Factors to be considered in determining whether competitive sealed bidding is not practicable or advantageous include:

(1) Whether the award determination involves the consideration of factors in addition to financial return to the awarding government agency;

(2) Whether oral or written discussions may need to be conducted with offerors concerning technical and financial aspects of their proposals;

(3) Whether offerors may need to be afforded the opportunity to revise their proposals, including financial return to the awarding government agency; and

(4) Whether an award may need to be based upon a comparative evaluation as stated in the request for proposals of differing financial return, quality, and contractual factors, in order to determine the most advantageous offering to the awarding government agency. Quality factors include technical and performance capability and the content of the technical proposal.

(b) Proposals shall be solicited through a request for proposals.

(c) Public notice of the request for proposals shall be given in the same form and manner for advertisements for bids in section 102-4.

(d) Proposals shall be opened so as to avoid disclosure of contents to competing offerors during discussion. A register of proposals shall be prepared and shall be open for public inspection after the contract award.

(e) The request for proposals shall state the relative importance of (1) financial return to the awarding government agency and (2) other evaluation factors.

(f) Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(g) Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous taking into consideration the financial return to the awarding government agency and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made."

SECTION 2. Section 102-1, Hawaii Revised Statutes, is amended to read as follows:

"102-1 Definition. The word "concession" as used in this chapter means the grant to a person of the privilege to:

(1) Conduct operations [that are essentially retail in nature,] involving the sale of goods, wares, merchandise, or services to the general public [, such as restaurants, cocktail lounges, soda fountains, and retail stores,] including, but not limited to, food and beverage establishments, retail stores, and advertising, communications, and telecommunication services, in or on buildings or land under the jurisdiction of any government agency; [and]

(2) Operate a parking lot on property owned or controlled by the State with the exception of buildings, facilities, and grounds operated by or otherwise under the jurisdiction of the department of education[.]; and

(3) Use, for compensation, space on public property to display advertising or to conduct operations for communications and telecommunications purposes.

The definitions of chapter 103D shall apply to this chapter unless the context clearly requires otherwise."

SECTION 3. Section 102-2, Hawaii Revised Statutes, is amended to read as follows:

"102-2 Contracts for concessions; bid or competitive sealed proposals required, exception. (a) Except as otherwise specifically provided by law, no concession or concession space shall be leased, let, licensed, rented out, or otherwise disposed of either by contract, lease, license, permit or any other arrangement, except under contract let after public [advertisement] notice for sealed [tenders] bids or sealed proposals in the manner provided by law; provided that the duration of the grant of the concession or concession space shall be related to the investment required but in no event to exceed fifteen years.

(b) The bidding and proposal requirements of subsection (a) shall not apply to concessions or space on public property set aside for the following purposes:

(1) For operation of ground transportation services at airports;

(2) For lei vendors;

(3) For airline and aircraft operations;

(4) For automatic teller machines and vending machines, except vending machines located at public schools operated by blind or visually handicapped persons in accordance with section 302A-412;

(5) For operation of concessions set aside without any charge;

(6) For operation of concessions by handicapped or blind persons; except concessions operated in the public schools by blind or visually handicapped persons in accordance with section 302A-412;

(7) For operation of concessions on permits revocable on notice of thirty days or less; provided [that no] such permits shall be issued [unless the premises covered under the permit is no longer being used for the existing purposes, and that the permit is issued] as a temporary use of the premises until the [governmental] government agency proceeds to [use the premises for a new purpose; and provided further that no permits shall be issued for more than one year;] lease the premises under contract let after public advertisement for bids or competitive sealed proposals; provided further that the one year period may be extended for additional periods in the event the premises are under construction, renovation or being prepared for a new use;

(8) For operation of concessions or concession spaces for a beach service association dedicated to the preservation of the Hawaii beachboy tradition, incorporated as a nonprofit corporation in accordance with state law, and whose members are appropriately licensed or certified as required by law; [and]

(9) For operation of concessions at county zoos, botanic gardens, or other county parks which are environmentally, culturally, historically, or operationally unique and are supported, by nonprofit corporations incorporated in accordance with state law solely for purposes of supporting county aims and goals of the zoo, botanic garden, or other county park and operating under agreement with the appropriate agency solely for such purposes, aims, and goals[.]; and

(10) For operation of concessions that furnish goods or services for which there is only one source, as determined in writing by the head of the government agency awarding the concession and included in the contract file.

(c) The bidding and proposal requirements of subsection (a) shall not apply to any nonrenewable dispositions granting rights for a period not in excess of fourteen days."

SECTION 4. Section 102-4, Hawaii Revised Statutes, is amended to read as follows:

"102-4 Advertisement for bids. [Publication] Public notice of a call for tenders shall be made not less than three different days [in a newspaper of general circulation printed and published within the State,] statewide, with respect to any state agency, or [of general circulation] countywide within the particular county with respect to any county or county agency."

SECTION 5. Statutory material to be repealed is bracketed. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.