RELATING TO PROCUREMENT.

HB1155

HOUSE OF REPRESENTATIVES

H.B. NO.

1155

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROCUREMENT.

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

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SECTION 1.
�
Section
103D-102, Hawaii Revised Statutes, is amended by amending subsection (b) to read
as follows:

����
"(b)
�

Notwithstanding subsection (a), this chapter shall not apply to
contracts by governmental bodies:

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(1)
�
Solicited
or entered into before July 1, 1994, unless the parties agree to its
application to a contract solicited or entered into prior to July 1, 1994;

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(2)
�
To
disburse funds, irrespective of their source:

���������
(A)
�
For
grants as defined in section 42F-101, made by the State in accordance with
standards provided by law as required by article VII, section 4, of the state
constitution; or by the counties pursuant to their respective charters or
ordinances;

���������
(B)
�
To
make payments to or on behalf of public officers and employees for salaries,
fringe benefits, professional fees, or reimbursements;

���������
(C)
�
To
satisfy obligations that the State is required to pay by law, including paying
fees, permanent settlements, subsidies, or other claims, making refunds, and
returning funds held by the State as trustee, custodian, or bailee;

���������
(D)
�
For
entitlement programs, including public assistance, unemployment, and workers'
compensation programs, established by state or federal law;

���������
(E)
�
For
dues and fees of organizations of which the State or its officers and employees
are members, including the National Association of Governors, the National
Association of State and County Governments, and the Multi-State Tax
Commission;

���������
(F)
�
For
deposit, investment, or safekeeping, including expenses related to their
deposit, investment, or safekeeping;

���������
(G)
�
To
governmental bodies of the State;

���������
(H)
�
As
loans, under loan programs administered by a governmental body; and

���������
(I)
�
For
contracts awarded in accordance with chapter 103F;

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(3)
�
To
procure goods, services, or construction from a governmental body other than
the university of Hawaii bookstores, from the federal government, or from
another state or its political subdivision;

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(4)
�
To
procure the following goods [
or
]
,
services
, or construction

that are available from multiple sources but for which procurement by
competitive means is either not practicable or not advantageous to the State:

���������
(A)
�
Services
of expert witnesses for potential and actual litigation of legal matters
involving the State, its agencies, and its officers and employees, including
administrative quasi-judicial proceedings;

���������
(B)
�
Works
of art for museum or public display;

���������
(C)
�
Research
and reference materials including books, maps, periodicals, and pamphlets,
which are published in print, video, audio, magnetic, or electronic form;

���������
(D)
�
Meats
and foodstuffs for the Kalaupapa settlement;

���������
(E)
�
Opponents
for athletic contests;

���������
(F)
�
Utility
services whose rates or prices are fixed by regulatory processes or agencies;

���������
(G)
�
Performances,
including entertainment, speeches, and cultural and artistic presentations;

���������
(H)
�
Goods
and services for commercial resale by the State;

���������
(I)
�
Services
of printers, rating agencies, support facilities, fiscal and paying agents, and
registrars for the issuance and sale of the State's or counties' bonds;

���������
(J)
�
Services
of attorneys employed or retained to advise, represent, or provide any other
legal service to the State or any of its agencies, on matters arising under
laws of another state or foreign country, or in an action brought in another
state, federal, or foreign jurisdiction, when substantially all legal services
are expected to be performed outside the State;

���������
(K)
�
Financing
agreements under chapter 37D;

���������
(L)
�
Educational
materials and related training for direct student instruction in career and
technical education programs as defined in section 302A-101, including
supplies, implements, tools, machinery, electronic devices, or other goods
purchased by the department of education; provided that:

�������������
(i)
�
The department of education shall acquire three written quotes for
purchases that exceed $100,000 made pursuant to this subparagraph;

������������
(ii)
�
Awards over $2,500 shall comply with section 103D-310(c); and

�����������
(iii)
�
Awards over $500,000 shall be approved by the superintendent of
education; and

���������
(M)
�
Any
other goods [
or
]
,
services,
or constuction
that the policy
board determines by rules or the chief procurement officer determines in
writing is available from multiple sources but for which procurement by
competitive means is either not practicable or not advantageous to the State;
and

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(5)
�
That
are specific procurements expressly exempt from any or all of the requirements
of this chapter by:

���������
(A)
�
References
in state or federal law to provisions of this chapter or a section of this
chapter, or references to a particular requirement of this chapter; and

���������
(B)
�
Trade
agreements, including the Uruguay Round General Agreement on Tariffs and Trade
(GATT), that require certain non-construction and non-software development
procurements by the comptroller to be conducted in accordance with its terms."

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SECTION 2.
�

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

����
SECTION 3.
�
This Act shall
take effect upon its approval
; provided that the amendments made to
section 103D-102(b), Hawaii

Revised Statutes,
by section 1 of this Act shall not be repealed when that section is reenacted
on July 1, 2027, pursuant to section 4 of Act 150, Session Laws of Hawaii 2024.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Procurement; Exemptions; Construction Projects

Description:

Exempts from the Hawaii Public Procurement Code contracts
by government bodies to procure certain construction projects.

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