HOUSE OF REPRESENTATIVES
H.B. NO.
1155
THIRTY-THIRD LEGISLATURE, 2025
H.D. 1
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103D-102, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) This chapter shall apply to all procurement contracts made by governmental bodies whether the consideration for the contract is cash, revenues, realizations, receipts, or earnings, any of which the State receives or is owed; in-kind benefits; or forbearance; provided that nothing in this chapter or rules adopted hereunder shall prevent any governmental body from complying with the terms and conditions of any other grant, gift, bequest, or cooperative agreement[[Struck through: .]][Underlined: ; provided further that this chapter shall not apply to project management.]"
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
"[Underlined: "Project management"][Underlined: means a professional service performed by a nongovernmental third-party for a project, including drafting plans and designs for a project and managing a project's schedule, cost, quality, safety, scope, and function, and ensuring that the project is completed on time and within budget.]"
SECTION 3. Section 103D-405, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) Outside contractors may be utilized to prepare specifications and work statements in the development of a solicitation. Contractors paid for those services shall be precluded from bidding on or receiving a contract when they participated [[Struck through: in any way]] in the development of the solicitation package or any resulting contract[[Struck through: .]][Underlined: ; provided that an outside contractor who has been paid to prepare specifications and work statements in the development of a solicitation may bid on or receive a contract after they participated in the development of the solicitation package for the resulting contract if:]
[Underlined: (1)] [Underlined: The purchasing agency is the department of transportation or a subdivision or an agency department of transportation;]
[Underlined: (2)] [Underlined: The chief procurement officer of the department of transportation determines in writing that a waiver authorizing the outside contractor to bid on or receive a contract is in the best interest of the State; and]
[Underlined: (3)] [Underlined: The solicitation package requires a procurement method that is allowable under federal statute; federal regulation; federal special experimental, demonstration project; or a federal approval of the procurement method.]"
SECTION 4. No later than thirty days after the first year of implementation of this Act, the department of transportation shall submit a report to the legislature. The report shall contain:
(1) A summary of the application of this Act to procurements;
(2) An explanation of the benefits of this Act to the State;
(3) A recommendation of whether the amendments made by this Act should be made permanent, amended, or repealed; and
(4) Any other findings and recommendations deemed relevant by the department of transportation, including any proposed legislation.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2027; provided that the underlying provisions of sections 103D-102(a), 103D-104, and 103D-405(d), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.
Report Title:
Procurement; Exemptions; Department of Transportation; Project Management; Government Bodies; Construction Projects
Description:
Temporarily exempts project management from procurement. Temporarily authorizes outside contractors who prepared specifications and work statements in the development of a Department of Transportation solicitation to bid on those projects if certain requirements are satisfied. Requires a report by the Department of Transportation. Effective 7/1/3000. Sunsets 6/30/2027. (SD1)
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