Bill Text: HI HB1877 | 2024 | Regular Session | Introduced
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-24 - Referred to LGO, FIN, referral sheet 1 [HB1877 Detail]
Download: Hawaii-2024-HB1877-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1877 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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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 commission to improve standards of conduct, in its final report submitted to the house of representatives on December 1, 2022, urged county governments to identify organizational risks of corruption and ethical violations and to develop systematic improvements to minimize those risks. The legislature finds that the county-related events recited in the final report, involving a select few employees and officials in the city and county of Honolulu, the county of Hawaii, and the county of Maui, have shaken the public's trust in the strength and integrity of county government. In particular, the bribery scandal involving an official in Maui county highlighted potential pitfalls in placing undue reliance on the discretion of a single individual to determine that there is only one source for a required good, service, or construction.
The legislature further finds that the public procurement code should be amended to assist the counties in strengthening their procedures for sole-source procurements.
The legislature also finds that the public procurement code contains a strong and clear statement of the requirements of ethical public procurement at section 103D-101, Hawaii Revised Statutes, and recognizes that principles of ethical procurement generally favor an absence of political involvement. However, to minimize the risk of corruption and ethical violations, additional oversight is needed to strengthen public scrutiny and transparency and to maintain the integrity of sole source procurement decisions. This need is particularly acute as Maui County faces elevated spending requirements in response to the wildfires of August 2023.
Accordingly, the purpose of this Act is to require county council approval for contracts that exceed $30,000 and are awarded by a county under its statutory authorization for sole source procurement.
SECTION 2. Section 103D-306, Hawaii Revised Statutes, is amended to read as follows:
"§103D-306 Sole source
procurement. (a) A contract may be awarded for goods,
services, or construction without competition when [the]:
(1) The head of
a purchasing agency determines in writing that there is only one source for the
required good, service, or construction[, the];
(2) The
determination is reviewed and approved by the chief procurement officer[,
the];
(3) The written
determination is posted in the manner described in rules adopted by the policy
board[, a];
(4) A review of
past performance, if available, has been conducted[,]; and [no]
(5) No
objection is outstanding[.];
provided that a contract to be awarded by a
county under this section shall first be approved by the council of the county
by resolution if the contract amount exceeds $30,000.
(b) The written determination, any objection, past performance evaluations relied upon, and a written summary of the disposition of any objection shall be included in the contract file.
[(b)] (c) The written determination shall contain such
information as the rules of the policy board require. Persons may file written objections to the
issuance of a contract pursuant to this section. Rules of the policy board shall provide for
the disposition of objections, including a written summary of the disposition.
[(c)] (d) The rules of the policy board shall include a
non-exhaustive list of procurements which constitute sole source procurements
and criteria for determining when a particular procurement may be determined to
be a sole source. The rules shall also
prescribe when cost or pricing data must be considered and how they are to be
used in establishing the price, terms, and conditions, if any, for a contract
awarded pursuant to this section."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED
BY: |
_____________________________ |
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By
Request |
Report Title:
Maui County Council Package; Procurement; Sole Source Procurements; Counties
Description:
Amend the procurement code to require County Council approval for contracts awarded by a county under its statutory authorization for sole source procurement if the contract amount exceeds $30,000.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
