Report Title:

Procurement; State Resident Preferences; Small Purchases

Description:

Establishes preference in procurement code for contractors that have complied with all applicable Hawaii laws and are Hawaii domestic corporations. Exempts state construction contracts under $250,000 from procurement code. (SB458 SD1)

 

THE SENATE

S.B. NO.

458

TWENTY-SECOND LEGISLATURE, 2003

S.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE PROCUREMENT CODE.

 

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

SECTION 1. Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:

"§103D-305 Small purchases; prohibition against parceling. Procurements of less than $25,000 for goods[,] or services, [or] and construction procurements of less than $250,000, shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section."

SECTION 2. Section 103D-1007, Hawaii Revised Statutes, is amended to read as follows:

"§103D-1007 Preference to bidders on state agency contracts. (a) The requirements in this section are in addition to any other applicable requirements provided in this chapter.

(b) The preference in this section may not be used in combination with any other preference otherwise available to a bidder under state or federal law.

(c) In any section 103D-302 or 103D-303 contract for a public works project, [a state agency shall award the contract to an offeror who has filed all state tax returns due to the State and paid all amounts owing on such returns for two successive years prior to submitting the offer; provided that the amount of that offer is not more than seven per cent higher than the amount offered by any competing contractor who has not filed or paid all applicable state taxes, and the amount of the offer by the state tax paying offeror is $5,000,000 or less.

(d) In any section 103D-302 or 103D-303 contract for a public works project, a state agency shall award the contract to an offeror who has filed all state tax returns due to the State and paid all amounts owing on such returns for four successive years prior to submitting the offer; provided that the amount of that offer is not more than seven per cent higher than the amount offered by any competing contractor who has not filed or paid all applicable state taxes, and the amount of the offer by the state tax paying offeror is more than $5,000,000.

(e) If two or more contractors who have paid state and county taxes or were required to submit a filing regarding state and county taxes are bidding on a public works contract, and those contractors meet the criteria outlined in subsection (c) or (d), the state agency shall award the contract to the contractor among them who has submitted the lowest bid.] preference shall be given to contractors that are incorporated under the laws of the State and who affirm, in the contract, that the following documents are available for immediate inspection by the purchasing agency and any other duly authorized representative of the State:

(1) The contractor's Hawaii state general excise tax license;

(2) The contractor's Hawaii state form UC-1 (report to determine liability under the Hawaii employment security law);

(3) The contractor's Hawaii state form DC-3 (disability compensation questionnaire);

(4) The contractor's Hawaii state form TDI-62 (temporary disability insurance certificate); and

(5) A copy of the contractor's prepaid health insurance plan.

Any contractor found to have made a false affirmation under this section may have its offer rejected and may be debarred or suspended pursuant to section 103D-702.

[(f)] (d) If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public works project because of preference awarded by this section, this section shall not apply insofar as its application would preclude or reduce federal assistance for that work."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3003.