Report Title:

Hawaii Procurement Code; Small Purchases

Description:

Exempts small purchases from verification requirements relating to tax clearances, DCCA certificates, and DLIR certificates.

HOUSE OF REPRESENTATIVES

H.B. NO.

1469

TWENTY-THIRD LEGISLATURE, 2005

 

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 the procurement of items requires verification of a vendor's tax clearance and possession of certificates from the department of commerce and consumer affairs and the department of labor and industrial relations. However, the application of these procedures to small purchases under $25,000 unduly hinders the procurement process. To meet the current standards of procurement for small purchases, additional clerical staff and ascertainment of qualification of vendors would be needed. In addition, small retailers may be unwilling to sell their goods because of the increased costs and inconvenience of doing business.

The purpose of this measure is to exempt small purchases from the verification requirements involving tax clearances and certificates from the departments of commerce and consumer affairs and labor and industrial relations.

SECTION 2. Section 103D-310, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393, and shall:

(1) Be incorporated or organized under the laws of the State; or

(2) Be registered to do business in the State as a separate branch or division that is capable of fully performing under the contract.

Offerors shall produce documents to the procuring officer to demonstrate compliance with this subsection. Any offeror making a false affirmation or certification under this subsection shall be suspended from further offerings or awards pursuant to section 103D-702. The procuring officer shall verify compliance with this subsection for all contracts awarded pursuant to sections 103D-302, 103D-303, 103D-304, 103D-305, and 103D-306; provided that the attorney general may waive the requirements of this subsection for contracts for legal services if the attorney general certifies in writing that comparable legal services are not available in this State. Verification pursuant to this subsection shall not be required for small purchases under section 103D-305."

SECTION 3. New statutory material is underscored.

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

INTRODUCED BY:

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