Bill Text: HI SB3092 | 2016 | Regular Session | Amended

Hawaii Senate Bill 3092 (Prior Session Legislation)

Bill Title: Procurement Officers; Competitive Sealed Bidding; Subcontractors; Licensing

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Engrossed - Dead) 2016-03-30 - The committee(s) on FIN recommend(s) that the measure be deferred. [SB3092 Detail]

Download: Hawaii-2016-SB3092-Amended.html

THE SENATE	S.B. NO.	3092
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 2
STATE OF HAWAII		H.D. 2

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 delivery and award of public works construction projects can be hindered by bid challenges resulting in a lapse in funding and other procurement issues. Many times there are communications from a bidder indicating flaws or technical discrepancies in a low-bidder's proposal before a determination has been made that the low bidder is the responsible and responsive bidder. Several recent informal inquiries and bid challenges related to subcontractor listing and licensing issues have caused major delays and cost increases for public works construction projects.

The legislature further finds that due to the large number of licenses available, it has become increasingly difficult for general contractors to verify whether a subcontractor has the proper license to perform the type of work that the subcontractor has been contracted to perform. Ensuring that subcontractors meet all of the necessary requirements to perform contracted work on State and county projects will address licensing concerns and greatly minimize bid challenges pertaining to the verification of subcontractor qualifications and licensing.

The purpose of this Act is to authorize procurement officers to consider a previously licensed and listed subcontractor's license as valid; provided that certain conditions are satisfied.

SECTION 2. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of invitations for bids, awards, or contracts based on such bid mistakes, shall be permitted in accordance with rules adopted by the policy board. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the public or to fair competition shall be permitted[.]; provided that the procurement officer may consider a listed subcontractors license as valid if the subcontractor was previously licensed to perform the scope of work indicated within sixty days prior to bid opening, and if at the time of award or within sixty days of bid opening, whichever is sooner, all listed subcontractors are appropriately licensed.

Except as otherwise provided by rule, all decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the chief procurement officer or head of a purchasing agency."

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, 2112.

Report Title:

Procurement Officers; Competitive Sealed Bidding; Subcontractors; Licensing

Description:

Authorizes procurement officers to consider a previously licensed and listed subcontractor's license as valid; provided that certain conditions are satisfied. (SB3092 HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.