Report Title:

Repeal Statutory exemptions from chapter 103D, HRS

Description:

Repeals various exemptions from procurement source selection methods.

THE SENATE

S.B. NO.

2831

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PROCUREMENT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Because the Hawaii public procurement code, chapter 103D, Hawaii Revised Statutues, offers various source selection methods, the need for an exemption from the code may no longer exist. In addition, the code′s section 103D-102(b)(4)(L) allows a purchasing agency to request, on a case-by-case basis, an exemption when it has been determined that procurement by competitive means is either not practicable or not advantageous to the State. Requirements for exemptions should be addressed within the provisions of the procurement code by the procurement policy board. Accordingly, the following statutory exemptions from chapter 103D are repealed.

SECTION 2. Section 36-35, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The expenditure of funds for any project with an estimated total cost of less than $100,000 shall be exempt from [chapter 103D and] section 464-4; provided that:

(1) The comptroller shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices[, but not subject to chapter 103D. However, where possible, the comptroller is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption of chapter 103D and shall not subject the comptroller to any other provision of chapter 103D];

(2) Insofar as is practical, and based on specifications developed, adequate and reasonable competition of no fewer than three proposals shall be solicited for each project, based on rules adopted by the comptroller;

(3) Considering all factors, including quality, warranty, and delivery, the award shall be made to the vendor with the most advantageous proposal;

(4) The procurement requirements shall not be artificially divided or parceled so as to avoid competitive bidding or competitive proposals; and

(5) Formal design for projects shall be done when there is a clear need to preserve structural integrity, health and safety, or to clearly communicate construction requirements.

For all projects, the comptroller shall develop a strategy for the efficient and cost-effective use of government and private-sector workforces and consider increased flexibility through public-private partnering, design-build options, cost plus, job order contracts, performance-based contracts, request for proposals, and any other means to improve communications and accelerate repairs while preserving the quality of the repairs."

SECTION 3. Section 39A-32, Hawaii Revised Statutes, is amended to read as follows:

"39A-32 Department powers as to health care facilities. In addition to powers which it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include, but are not limited to, the following:

(1) Notwithstanding and without compliance with section 103-7 [and chapter 103D], but with the approval of the governor, to enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party, and to enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party.

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part.

(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, extension, or refinancing of outstanding obligations related to a project.

(4) As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for this project, to pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which such bonds are issued; to pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to such project or such special purpose revenue bonds; and to pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to such project; or any combination of the foregoing.

(5) To extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for such extension or renewal contained in a project agreement or related agreement theretofore approved by the governor.

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part.

When the department finances or refinances a project by the issuance of special purpose revenue bonds as contemplated by this part, the State shall not exercise the power of eminent domain to acquire a project or any part thereof for lease or transfer to a project party, nor shall the State operate a project on behalf of a project party."

SECTION 4. Section 39A-72, Hawaii Revised Statutes, is amended to read as follows:

"39A-72 Department powers as to manufacturing enterprises. In addition to powers which it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include, but are not limited to, the following:

(1) Notwithstanding and without compliance with section 103-7 [and chapter 103D], but with the approval of the governor, to enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party, and to enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party.

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part.

(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, extension, or maintenance of a project.

(4) As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for a project, to pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which such bonds are issued; to pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to such project or such special purpose revenue bonds; and to pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to such project; or any combination of the foregoing.

(5) To extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for such extension or renewal contained in a project agreement or related agreement theretofore approved by the governor.

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part."

SECTION 5. Section 39A-112, Hawaii Revised Statutes, is amended to read as follows:

"39A-112 Department powers as to processing enterprises. In addition to powers which it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include, but are not limited to, the following:

(1) Notwithstanding and without compliance with section 103-7[ and chapter 103D], but with the approval of the governor, to enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party, and to enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party.

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part.

(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, extension, or maintenance of a project.

(4) As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for a project, to pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which such bonds are issued; to pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to such project or such special purpose revenue bonds; and to pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to such project; or any combination of the foregoing.

(5) To extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for such extension or renewal contained in a project agreement or related agreement theretofore approved by the governor.

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part."

SECTION 6. Section 39A-152, Hawaii Revised Statutes, is amended to read as follows:

"39A-152 Department powers as to industrial enterprises. In addition to powers which it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include, but are not limited to, the following:

(1) Notwithstanding and without compliance with section 103-7[ and chapter 103D], but with the approval of the governor, to enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party, and to enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party.

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part.

(3) To lend the proceeds of the special purpose revenue bonds issued for a project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, extension, or maintenance of a project.

(4) As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for a project, to pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the project for which such bonds are issued; to pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to such project or such special purpose revenue bonds; and to pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to such project; or any combination of the foregoing.

(5) To extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for such extension or renewal contained in a project agreement or related agreement theretofore approved by the governor.

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part."

SECTION 7. Section 39A-192, Hawaii Revised Statutes, is amended to read as follows:

"39A-192 Department powers as to energy projects. In addition to powers which it may now have, the department shall have all powers necessary or convenient to accomplish the purposes of this part. The powers of the department include, but are not limited to, the following:

(1) Notwithstanding and without compliance with section 103-7 [and chapter 103D] but with the approval of the governor to enter into and carry out a project agreement, or an amendment or supplement to an existing project agreement, with a project party, and to enter into and carry out any agreement whereby the obligation of a project party under a project agreement will be unconditionally guaranteed by a person other than a project party;

(2) To issue special purpose revenue bonds pursuant to and in accordance with this part;

(3) To lend the proceeds of the special purpose revenue bonds issued for an energy project to the project party for use and application by the project party for the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of an energy project;

(4) As security for the payment of the principal of and interest on the special purpose revenue bonds issued for an energy project, to pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the department under the project agreement for the energy project for which such bonds are issued; to pledge and assign the interest and rights of the department under the project agreement or other agreement with respect to such project or such special purpose revenue bonds; and to pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the department with respect to such energy project; or any combination of the foregoing;

(5) To extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for such extension or renewal contained in a project agreement or related agreement theretofore approved by the governor; and

(6) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this part.

When the department finances an energy project by the issuance of special purpose revenue bonds as contemplated by this part, the State shall not exercise the power of eminent domain to acquire an energy project or any part thereof for lease or transfer to a project party, nor shall the State operate a project on behalf of a project party."

SECTION 8. Section 41D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(a) The comptroller, through the risk manager, shall:

(1) Have discretion to purchase casualty insurance for the State or state agencies, including those employees of the State who, in the comptroller's discretion, may be at risk and shall be responsible for the acquisition of all casualty insurance;

(2) Have discretion to purchase property insurance for the State or state agencies and shall acquire all property insurance;

(3) Direct and manage all risk management and insurance programs of the State, except for employee benefits insurance and workers' compensation insurance programs or as otherwise provided in chapters 87, 88, 383 to 386A, 392, and 393;

(4) Consult with state agencies to determine what property, casualty, and other insurance policies are presently in force or are sought by the state agencies and to make determinations about whether to continue subscribing to insurance policies. In the event that the risk manager's determination is not satisfactory to the state agency, the state agency may have the risk manager's decision reviewed by the comptroller. In this case, the comptroller's decision shall be final;

(5) Consolidate and combine state insurance coverages, and purchase excess insurance when, in the comptroller's discretion, it is appropriate to do so;

(6) Acquire risk management, investigative, claims adjustment, actuarial, and other services, except attorney's services, as may be required for the sound administration of this chapter;

(7) Gather from all state agencies and maintain data regarding the State's risks and casualty, property, and fidelity losses;

(8) In conjunction with the attorney general and as otherwise provided by this chapter, compromise or settle claims cognizable under chapter 662;

(9) Provide technical services in risk management and insurance to state agencies;

(10) Be authorized to establish a captive insurance company pursuant to article 19 of chapter 431 to effectuate the purposes of this chapter; and

(11) Do all other things appropriate to the development of sound risk management practices and policies for the State.

[(b) The requirements of chapter 103D shall not apply to the acquisition of insurance by or for state agencies.]

(c) Any provision in this section to the contrary notwithstanding, the University of Hawaii (as to casualty insurance risks only), the Research Corporation of the University of Hawaii (as to casualty insurance risks only), and the public health facilities of the department of health (with respect to medical malpractice risks only) shall be exempt from the requirements of this chapter."

SECTION 9. Section 87A-18, Hawaii Revised Statutes, is amended to read as follows:

"[[87A-18]] Long-term care benefits plan; carrier or third-party administrator. [(c) Without regard to chapter 103D, the board may contract with a carrier to provide fully insured benefits or with a third-party administrator to administer self-insured benefits.]"

SECTION 10. Section 87A-20, Hawaii Revised Statutes, is amended to read as follows:

"[[87A-20] Selection of benefits plan carriers or third-party administrators. Procurement of a carrier or third-party administrator for any benefits plan shall be exempt from chapter 103D.]"

SECTION 11. Section 87A-20, Hawaii Revised Statutes, is amended read as follows:

"[[87A-24]] Other powers. In addition to the power to administer the fund, the board may:

(1) Collect, receive, deposit, and withdraw money on behalf of the fund;

(2) Invest moneys in the same manner specified in section 88-119(1)(A), (1)(B), (1)(C), (2), (3), (4), (5), (6), and (7);

(3) Hold, purchase, sell, assign, transfer, or dispose of any securities or other investments of the fund, as well as the proceeds of those investments and any money belonging to the fund;

(4) Appoint, and at pleasure dismiss, an administrator and other fund staff. The administrator and staff shall be exempt from [chapter 76] and shall serve under and at the pleasure of the board;

(5) Make payments of periodic charges and pay for reasonable expenses incurred in carrying out the purposes of the fund;

(6) Contract for the performance of financial audits of the fund and claims audits of its insurance carriers;

[(7) Without the necessity of complying with the requirements of chapter 103D, retain auditors, actuaries, investment firms and managers, benefit plan consultants, or other professional advisors to carry out the purposes of this chapter;]

[(8)] (7) Establish health benefits plan and long-term care benefits plan rates that include administrative and other expenses necessary to effectuate the purposes of the fund; and

[(9)] (8) Require any department, agency, or employee of the State or counties to furnish information to the board to carry out the purposes of this chapter."

SECTION 12. Section 103-53, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"103-53 Contracts with the State or counties; tax clearances, assignments. (e) This section shall not apply to:

(1) Any procurement of less than $25,000 or is considered a small purchase under section 103D-305 and any state or county department contract of less than $25,000;]

(2) Emergency purchases for the procurement of goods, services, or construction under section 103D-307, disaster relief under chapter 127, or a civil defense emergency under chapter 128;

(3) Grants and subsidies disbursed by a state agency pursuant to chapter 42D or in accordance with standards provided by law as required by article VII, section 4, of the State Constitution, or made by the counties pursuant to their respective charters or ordinances;

(4) Contracts or agreements between government agencies;

(5) Contracts or agreements to disburse funds:

(A) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, and reimbursements;

(B) To satisfy obligations required to be paid by law, including fees, judgments, settlements, and other payments for resolving claims;

(C) To make refunds or return funds held by the State or county as trustee, custodian, or bailee;

(D) For entitlement programs, including public assistance, unemployment, and workers' compensation programs, established by state or federal law;

(E) For deposit, investment, or safekeeping, including sums to pay expenses related to their deposit investment, or safekeeping;

(F) For loans under government-administered loan programs;

(G) To make periodic, recurring payments for utility services;

(6) Rent for the use or occupation of the premises and facilities at Aloha Stadium, the convention center, or any other state or county large spectator events facility;

(7) Contracts or agreements entered into pursuant to chapter 102[; and].

[(8) Requirements of chapter 103D.]"

SECTION 13. Section 163D-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"163D-6 Subsidiaries; establishment. (b) If the corporation acquires the assets of a private or other corporation, then, notwithstanding any law to the contrary:

(1) Neither the corporation nor any subsidiary corporation vested with the assets shall be subject to chapter 91 with respect to the assets;

(2) Employees retained to operate the assets shall not be subject to chapter 76;

(3) Assets constituting real property interest shall not be subject to chapter 171;

(4) No investment, loan, or use of funds by the corporation or a subsidiary corporation vested with the assets shall be subject to chapter 42D, 42F, or 103[, or 103D]; and

(5) Neither the corporation nor a subsidiary corporation vested with the assets shall constitute a public utility or be subject to the jurisdiction of the public utilities commission under chapter 269.

(c) The corporation may transfer to any subsidiary corporation any moneys, any real, personal, or mixed property, or any project, in order to carry out the purposes of this chapter. Each subsidiary corporation shall have all the powers of the corporation."

SECTION 14. Section 163D-15.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"[[163D-15.5]] Waiahole water system revolving fund. (b) No expenditure, use, or transfer of funds from the Waiahole water system revolving fund by the corporation shall be subject to chapter 42D, 42F, or 103[, or 103D]."

SECTION 15. Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"163D-17 Hawaii agricultural development revolving fund; established; use of corporation funds. (f) No investment, loan, grant, or use of corporate funds for the purposes of this chapter shall be subject to chapter 42F[ or 103D]."

SECTION 16. Section 196-22, Hawaii Revised Statutes, is amended to read as follows:

"[[196-22]] State energy projects. State energy projects may be implemented under this chapter with the approval of the comptroller and the director of finance. Notwithstanding section 196-21 or section 36-41, the comptroller or the senior agency official of the department of accounting and general services, along with the director of finance, may exempt a state energy project from the advertising and competitive bidding requirements of section 196-21 or section 36-41 and chapter[s] 103[ and 103D], if the comptroller deems exemption appropriate for energy projects with proprietary technology or necessary to meet the goals of the legislature. In addition, this section shall be construed to provide the greatest possible flexibility to agencies in structuring agreements entered into so that economic benefits and existing energy incentives may be used and maximized and financing and other costs to agencies may be minimized. The specific terms of energy performance contracting under section 36-41 may be altered if deemed advantageous to the agency and approved by the director of finance and the senior agency official."

SECTION 17. Section 201-85, Hawaii Revised Statutes, is amended to read as follows:

"201-85 Exemptions. The department is authorized to hire employees necessary to staff its out-of-state offices subject to chapter 76 and legislative appropriations. The department may also appoint such other employees exempt from chapter 76 as may be necessary to administer the affairs of its out-of-state offices. The initial appointment shall not exceed three years, during which time the department shall submit to the legislature a request for approval prior to continuation of the position. The department shall set the duties, responsibilities, salaries, holidays, vacations, leaves, hours of work, and working conditions for these employees. Subject to the approval of the director of budget and finance, the department may be exempted from the following state laws only to the extent necessary for the conduct of its business in operating out-of-state offices:

(1) Sections 36-27 and 36-30, relating to special fund transfers and reimbursements to the general fund;

[(2) Chapter 103D, relating to advertising for bids and purchases to be made in Hawaii whenever public moneys are expended;]

[(3)] (2) Chapter 36, relating to management of state funds;

[(4)] (3) Chapter 38, relating to deposits of public funds;

[(5)] (4) Chapter 40, relating to audit and accounting, except that the department shall comply with section 40-81;

[(6)] (5) Chapter 76, relating to civil service;

[(7)] (6) Chapter 77, relating to compensation;

[(8)] (7) Section 78-1, relating to public employment, except when expressly hiring personnel subject to section 78-1; and

[(9)] (8) Section 171-30, relating to acquisition of real property.

All moneys necessary for the establishment and operation of out-of-state offices shall be allocated by the legislature through appropriations out of the state general fund. The department shall include in its budgetary request for each upcoming fiscal period, the amounts necessary to effectuate the purposes of this section."

SECTION 18. Section 201B-12, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"[[201B-12]] Exemption of authority from taxation and Hawaii public procurement code. [(b) The authority shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements, construction contracts, lease and sublease agreements, or other contracts unless a project agreement with respect to a project otherwise shall require.]"

SECTION 19. Section 201G-13, Hawaii Revised Statutes, is amended to read as follows:

"201G-13 Development of property; additional powers. Notwithstanding any provision to the contrary, whenever the bids submitted for any development or rehabilitation project authorized pursuant to subparts A, B, G, and H of part II exceed the amount of funds available for that project, the corporation, with the approval of the governor, may disregard the bids and enter into an agreement to carry out the project, or undertake the project or participate in the project under the agreement, [without regard to chapter 103D;] provided that the total cost of the agreement and the corporation's participation, if any, shall not exceed the amount of funds available for the project; provided further that if the agreement is with a nonbidder, the scope of the project under agreement shall remain the same as that for which bids were originally requested."

SECTION 20. Section 201G-114, Hawaii Revised Statutes, is amended to read as follows:

"[[201G-114]] Additional powers; development. Notwithstanding and without compliance with section 103-7[ and chapter 103D] but with the approval of the governor, the corporation may enter into and carry out agreements and undertake projects or participate in projects authorized by this chapter. The powers conferred upon the corporation by this subpart shall be in addition and supplemental to the powers conferred upon it by part I and any other law, and nothing herein shall be construed as limiting any powers, rights, privileges, or immunities so conferred upon it."

SECTION 21. Section 201G-455, Hawaii Revised Statutes, is amended to read as follows:

"[[201G-455]] Program administration. To the extent that appropriations are made available, the corporation may contract with a provider agency to administer homeless facilities, or any other program for the homeless created by this part. The selection of provider agencies to administer homeless facilities, or any other program for the homeless authorized by this part, shall not be subject to chapters 42F, 102, 103,[ 103D,] and 103F. The selection of provider agencies shall be subject to qualifying standards and criteria established by rule."

SECTION 22. Section 201G-455, Hawaii Revised Statutes, is amended to read as follows:

"[[206E-182]] Powers. In addition and supplemental to the powers granted to the authority by law, the authority may:

[(1) With the approval of the governor, and without regard to chapter 103D, enter into a special facility lease or an amendment or supplement thereto whereby the authority agrees to construct, acquire, or remodel and furnish or equip a special facility solely for the use by another person to a special facility lease;]

[(2)] (1) With the approval of the governor, issue special facility revenue bonds in principal amounts that may be necessary to yield all or a portion of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility;

[(3)] (2) With the approval of the governor, issue refunding special facility revenue bonds with which to provide for the payment of outstanding special facility revenue bonds (including any special facility revenue bonds theretofore issued for this purpose) or any part thereof; provided any issuance of refunding special facility revenue bonds shall not reduce the principal amount of the bonds which may be issued as provided in paragraph (2);

[(4)] (3) Perform and carry out the terms and provisions of any special facility lease;

[(5)] (4) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, or remodel and furnish or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;

[(6)] (5) Construct any special facility on land owned by the State; provided that no funds derived herein will be expended for land acquisition; and

[(7)] (6) Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by another person. Neither the undertaking by the other person nor the acceptance by the authority of a contract theretofore entered into by the other person therefor, shall be subject to chapter 103D."

SECTION 23. Section 206G-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"206M-3 Powers, generally. [(b) The corporation shall be exempt from chapters 102 and 103D.]"

SECTION 24. Section 206G-3, Hawaii Revised Statutes, is amended to read as follows:

"[206M-42] Powers. In addition to any other powers granted to the development corporation by law, the development corporation may:

(1) With the approval of the governor, and without public bidding, enter into a special facility lease or an amendment or supplement thereto whereby the development corporation agrees to acquire, construct, improve, install, equip, and develop a special facility solely for the use by another party to a special facility lease;

(2) With the approval of the governor, issue special facility revenue bonds in principal amounts that may be necessary to yield the amount of the cost of any acquisition, construction, improvement, installation, equipping, and development of any special facility, including, subject to paragraph (6) the costs of acquisition of the site thereof; provided that the total principal amount of the special facility revenue bonds which may be issued pursuant to the authorization of this section shall not exceed $100,000,000;

(3) With the approval of the governor, issue refunding special facility revenue bonds with which to provide for the payment of outstanding special facility revenue bonds (including any special facility revenue bonds theretofore issued for this refunding purpose) or any part thereof; provided any issuance of refunding special facility revenue bonds shall not reduce the principal amount of the bonds that may be issued as provided in paragraph (2);

(4) Perform and carry out the terms and provisions of any special facility lease;

(5) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, improve, install, equip or develop any special facility, or accept the assignment of any contract therefor entered into by the other party to the special facility lease;

(6) Construct any special facility on land owned by the State; provided that no funds derived herein shall be expended for land acquisition.[; and

(7) Agree with the other party to the special facility lease whereby any acquisition, construction, improvement, installation, equipping, or development of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by another person. Neither the undertaking by the other person nor the acceptance by the development corporation of a contract theretofore entered into by the other person therefor, shall be subject to chapter 103D.]"

SECTION 25. Section 227D-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"227D-7 Exemption of authority from taxation and competitive bidding. [(b) The authority shall not be subject to any requirement of law for competitive bidding, including the requirements of chapters 103 and 103D for project agreements, construction contracts, retail concession or tour-related contracts, or other contracts unless a project agreement with respect to a project or research and technology park shall require otherwise.]"

SECTION 26. Section 245-23, Hawaii Revised Statutes, is amended to read as follows:

"[245-23] Department to furnish stamps; designs, specifications, and denominations; procurement. The department shall furnish stamps for sale to licensees. Stamps shall be of such designs, specifications, and denominations as may be prescribed by the department. [Purchase by the department of stamps from a vendor shall be exempt from the requirements of chapter 103D.]"

SECTION 27. Section 255D-4, Hawaii Revised Statutes, is amended to read as follows:

"[255D-4] Authority to enter agreement. The department may enter into the streamlined sales and use tax agreement with one or more states to simplify and modernize sales and use tax administration to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. In furtherance of the agreement, the department may act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers. The department may take other actions reasonably required to implement this section. Other actions authorized by this section include but are not limited to the adoption of rules not subject to chapter 91[ and the joint procurement not subject to chapter 103D], with other member states, of goods and services in furtherance of the cooperative agreement. The department, or the department's designee, may represent this State before the other states that are signatories to the agreement."

SECTION 28. Section 261-52, Hawaii Revised Statutes, is amended to read as follows:

"261-52 Powers. In addition and supplemental to the powers granted to the department by law, the department may:

[(1) With the approval of the governor, and without public bidding, enter into a special facility lease or an amendment or supplement thereto whereby the department agrees to construct, acquire, or remodel and furnish or equip a special facility solely for the use by another person to a special facility lease;]

[(2)] (1) With the approval of the governor, issue special facility revenue bonds in principal amounts that may be necessary to yield the amount of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility, including the costs of acquisition of the site thereof; provided that the total principal amount of the special facility revenue bonds which may be issued pursuant to the authorization of this paragraph shall not exceed $200,000,000; provided that these funds not be expended on nonpublic air facilities;

[(3)] (2) With the approval of the governor, issue refunding special facility revenue bonds with which to provide for the payment of outstanding special facility revenue bonds (including any special facility revenue bonds theretofore issued for this purpose) or any part thereof; provided any issuance of refunding special facility revenue bonds shall not reduce the principal amount of the bonds which may be issued as provided in paragraph (2);

[(4)] (3) Perform and carry out the terms and provisions of any special facility lease;

[(5)] (4) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, or remodel and furnish or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease;

[(6)] (5) Construct any special facility on land owned by the State; provided that no funds derived herein will be expended for land acquisition; and

[(7)] (6) Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by another person. [Neither the undertaking by the other person nor the acceptance by the department of a contract theretofore entered into by the other person therefor, shall be subject to chapter 103D.]"

SECTION 29. Section 266-52, Hawaii Revised Statutes, is amended to read as follows:

"266-52 Powers. In addition and supplemental to the powers granted to the department by law, the department may:

(1) With the approval of the governor, and without public bidding, enter into a special facility lease or an amendment or supplement thereto whereby the department agrees with another person engaged in maritime and maritime-related operations to construct, acquire, remodel, furnish, or equip a special facility solely for the use by such other person to a special facility lease; provided that such special facility lease may be amendatory and supplemental to an existing lease between the department and such other person for the land upon which the special facility which is the subject of such special facility lease is to be situated.

(2) With the approval of the governor:

(A) Issue special facility revenue bonds in such principal amounts as may be necessary to yield the amount of the cost of any construction, acquisition, remodeling, furnishing, and equipping of any special facility; provided that the total principal amount of the special facility revenue bonds which may be issued pursuant to the authorization of this subparagraph shall not exceed $100,000,000; and

(B) Issue special facility revenue refunding bonds, without further authorization by the legislature, to refund outstanding special facility revenue bonds, including special facility revenue refunding bonds, or any part thereof, at or before the maturity or redemption date, issued pursuant to this part; provided that any issuance of the refunding bonds shall not reduce the amount authorized by the legislature as provided in paragraph (2)(A).

(3) Perform and carry out the terms and provisions of any special facility lease.

(4) Notwithstanding section 103-7 or any other law to the contrary, acquire, construct, remodel, furnish, or equip any special facility, or accept the assignment of any contract therefor entered into by the other person to the special facility lease.

(5) Construct any special facility on land owned by the State.

[(6) Agree with the other person to the special facility lease whereby any acquisition, construction, remodeling, furnishing, or equipping of the special facility and the expenditure of moneys therefor shall be undertaken or supervised by such other person. Neither such undertaking by such other person nor the acceptance by the department of a contract theretofore entered into by such other person therefor, shall be subject to chapter 103D.]"

SECTION 30. Section 302A-415 is amended to read as follows:

"[302A-415] Motor vehicles for driving instruction; purchase and sale. [Chapter 103D to the contrary notwithstanding,] [t](T)he department may enter into agreements with any dealer or company for the purchase of motor vehicles for driving instruction in the public schools if the agreements provide that the department pay $1 for each motor vehicle, take title thereto in the name of the State, and agree to resell it to the seller for $1 within sixty days following the last day of the school year. In the event of the seller's failure to repurchase, the department may retain the motor vehicle or dispose of it in accordance with rules adopted under chapter 91."

SECTION 31. Section 304-4 is amended to read as follows:

"(a) The board of regents shall have management and control of the general affairs, and exclusive jurisdiction over the internal organization and management, of the university. It may appoint a treasurer and such other officers as it deems necessary. It may authorize any officer, elected or appointed by it, to approve and sign on its behalf any voucher or other document which the board may approve and sign. It may delegate to the president or the president's designee the authority to render the final decision in contested case proceedings subject to chapter 91, as it deems appropriate. It may purchase or otherwise acquire lands, buildings, appliances, and other property for the purposes of the university and expend such sums of money as may be from time to time placed at the disposal of the university from whatever source. All lands, buildings, appliances, and other property so purchased or acquired shall be and remain the property of the university to be used in perpetuity for the benefit of the university. The board of regents, in accordance with law, shall manage the inventory, equipment, surplus property, and expenditures of the university and, subject to chapter 91, may adopt rules, further controlling and regulating the same.

(b) The board may charge resident and nonresident tuition fees for regular courses of instruction at any University of Hawaii campus, including any community college.

The board may also charge other fees for special programs of instruction, as well as laboratory fees, course fees, fees for student activities, and an information technology user fee. The board may charge other fees for summer session or evening courses, including differential fees for nonresident students.

The board may waive entirely or reduce the tuition fee or any of the other fees for graduate teaching and research assistants. The board may enter into agreements with government and university officials of any other state or foreign country to provide for reciprocal waiver of the nonresident tuition and fee differential. The board may waive the nonresident tuition and fee differential for selected students from Pacific and Asian jurisdictions when their presence would be beneficial to the university or the State. The board may waive entirely or reduce the tuition fee or any of the other fees for students, resident or nonresident. The board shall determine the percentage of allowable tuition and fee waivers for financial need and other university priorities. These tuition waivers and waivers of the nonresident tuition and fee differential shall be awarded in accordance with guidelines established by the board.

(c) The board shall adopt the necessary rules defining residence for tuition purposes herein; provided that the basic rule shall be that a student shall qualify for the resident tuition fee only if the following criteria are met:

(1) The adult student, or in the case of a minor student, the student's parents or guardians, has been a bona fide resident of this State for at least twelve consecutive months next preceding the student's first day of officially scheduled instruction for any semester or term in which the student is enrolling at the particular college or campus; and

(2) The adult or minor student has not been claimed as a dependent for tax purposes for at least twelve months next preceding the student's first day of officially scheduled instruction for any semester or term in which the student is enrolling at the particular college or campus by the student's parents or guardians who are nonresidents of the State; provided that this provision shall not apply in cases where the parent claiming the student as a dependent is entitled to do so under a child support order or agreement issued or entered into in conjunction with a divorce proceeding or legal separation agreement, and the other parent and the student meet the criteria set forth in paragraph (1).

(d) The board shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices[, but not subject to chapter 103D]. However, where possible, the board is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption of chapter 103D and shall not subject the board to any other provision of chapter 103D.

(e) The board may enter into concession agreements without regard to chapter 102.

(f) The official name of the board shall be Board of Regents, University of Hawaii, and the board shall adopt and use a common seal by which all official acts shall be authenticated."

SECTION 32. Section 304.8.94 is amended as follows:

"[304-8.94] Conference center revolving fund. There is established a revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii, Manoa campus. All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund. The dean of the college of continuing education and community service is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio-visual equipment, and conference supplies and materials[, without regard to chapter 103D and section 103-42]."

SECTION 33. Section 307-4 is amended to read as follows:

"307-4 Research corporation excepted from certain state laws. In order to carry out the purposes and objectives of the research corporation, including the conduct of research and training projects, the research corporation shall be granted flexibility in hiring its personnel and in handling and disbursing moneys by being excepted from the following state laws:

(1) Sections 36-27 and 36-30, relating to special fund reimbursements to the state general fund;

[(2) Chapter 103D and section 103-42, relating to advertising for bids and purchases to be made in Hawaii whenever public moneys are expended;]

[(3)] (2) Chapter 76, relating to civil service; and

[(4)] (3) Section 78-1, relating to public employment."

SECTION 30. Section 329-58, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"329-58 Education and research. [(b) The department of public safety may enter into contracts for educational and research activities without performance bonds and without regard to chapter 103D.]"

SECTION 31. Section 354-4, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"354D-4 Powers and duties of the director. Under the supervision of the director or the director's designee, the administrator of the correctional industries program shall:

(1) Develop programs generating revenue that best sustains their operation and allows for capital investment, and reimburses the general fund, when possible, for the expense of correctional services;

(2) Develop programs providing the maximum level of work and training opportunities for qualified, able-bodied inmates;

(3) Develop programs assuming responsibility for training qualified, able-bodied inmates in general work and specific training skills that increase their employment prospects after release;

(4) Develop programs in which inmates can learn skills used in the construction and other industries, while providing low-cost construction, renovation, and repairs of facilities, grounds, furniture, vehicles, and equipment for private, nonprofit social services, health, or education agencies and programs;

(5) Acquire or purchase equipment, materials, supplies, office space, insurance, and services necessary to establish and maintain programs pursuant to this chapter;

(6) Utilize labor services of qualified, able-bodied inmates in the manufacture or production of goods and services that are needed for the construction, operation, or maintenance of any office, department, institution, or agency supported in whole or in part by the State, the counties, or the federal government;

(7) Sell all goods and services to the State, the counties, or the federal government;

[(8) Enter into any contract or agreement and execute all instruments consistent with this chapter and exempt from chapter 103D;]

[(9)] (8) Purchase, lease, trade, exchange, acquire, and maintain personal property; and

[(10)] (9) Accept grants or loans from the State, the counties, or the federal government."

SECTION 32. Section 354-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"354D-8 Business operations; budget. (a) The administrator may purchase or cause to be purchased and maintained all necessary materials, supplies, space, services, and equipment required for the operation of the program. [Notwithstanding any other provision to the contrary, purchases by the administrator for the manufacture of any goods or services shall be exempt from the public bidding requirements of chapter 103D.]"

SECTION 33. Section 383-128, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"383-128 Employment and training fund established. (d) The department may contract for employment, education, and training services from public and private agencies and nonprofit corporations. Contracts, pursuant to subsection (b), shall be exempt from chapter[s 103D and] 103F so funds for these services may be expended in a timely manner to effectuate the purposes of this section. All other disbursements shall be in accordance with chapters 103D and 103F."

SECTION 34. Section 412:12-108, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"[[412:12-108]] Examinations; periodic reports; cooperative agreements; assessment of fees. (d) The commissioner may enter into contracts with any bank supervisory agency that has concurrent jurisdiction over a Hawaii state bank or an out-of-state state bank operating a branch in this State pursuant to this article to engage the services of the agency's examiners at a reasonable rate of compensation, or to provide the services of the commissioner's examiners to the agency at a reasonable rate of compensation. [Any contract executed under this section shall be exempt from the requirements of chapter 103D.]"

SECTION 35. Section 412:13-224, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"[[412:13-224]] Supervision and enforcement. (b) In order to carry out the purposes under this article, the commissioner may:

(1) Enter into cooperative, coordinating, or information-sharing agreements with any other bank supervisory agency or any organization affiliated or representing one or more bank supervisory agencies;

(2) With respect to periodic examination or other supervision of a foreign bank that maintains a Hawaii state branch, Hawaii state agency, or Hawaii representative office, accept reports of examinations performed by, and reports submitted to, other bank supervisory agencies in lieu of conducting examinations, or of receiving reports, as might otherwise be required under this article;

(3) Enter into joint examinations or joint enforcement actions with any other bank supervisory agency having concurrent jurisdiction over any foreign bank; provided that the commissioner, at any time, may take any action independently if the commissioner determines that the action is necessary or appropriate to carry out the commissioner's responsibilities under this article and to ensure compliance with the laws of this State;

[(4) Enter into contracts, exempt from the requirements of chapter 103D, with any bank supervisory agency having concurrent regulatory or supervisory jurisdiction over a foreign bank maintaining a Hawaii state branch, Hawaii state agency, or Hawaii representative office, to engage the services of the agency's examiners at a reasonable rate of compensation;] and

[(5)] (4) Assess supervisory, examination, and other fees and charges that shall be payable by foreign banks maintaining a Hawaii state branch, Hawaii state agency, or Hawaii representative office in connection with the commissioner's performance of the commissioner's duties under this article and in accordance with this chapter and rules adopted by the commissioner."

SECTION 36. Section 431:22-102, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"[[431:22-102]] Loss mitigation grant fund. (a) There is established a special fund to be designated as the loss mitigation grant fund. Moneys transferred to the loss mitigation grant fund may be expended by the commissioner to carry out the commissioner's duties and obligations under this article. Disbursements from the loss mitigation grant fund shall not be subject to chapter 42F, or 91[, or 103D]."

SECTION 37. Section 431P-16, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"431P-16 Establishment of trust funds. (a) The fund shall establish outside the state treasury a hurricane reserve trust fund and any accounts thereunder and any other trust fund or account necessary to carry out the purposes of this chapter. Moneys deposited in the hurricane reserve trust fund and any accounts thereunder or any other trust fund or account shall be held by the fund, as trustee, in a depository as defined in section 38-1 or according to a similar arrangement at the discretion of the board, including, but not limited to, trust or custodial accounts created for the benefit of the fund's secured parties under contractual claims financing arrangements. These moneys may be invested and reinvested in accordance with the plan of operation. [Disbursements from the trust funds shall not be subject to chapter 103D and shall be made in accordance with procedures adopted by the board.]"

SECTION 39. Statutory material to be repealed is bracketed. New statutory material is underscored.

SECTION 40. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST