Report Title:

Public Procurement Code; Administrative Fines

Description:

Authorizes the procurement policy board to set administrative fines and authorizes the chief procurement officer to assess the administrative fines.  Repeals the misdemeanor penalty for violation of the procurement code upon adoption of fines by rules by the procurement policy board.  (CD1)

THE SENATE	S.B. NO.	1929
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII		H.D. 2
		C.D. 1

A BILL FOR AN ACT

RELATING TO PUBLIC PROCUREMENT.

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

     SECTION 1.  Section 103D-106, Hawaii Revised Statutes, is amended to read as follows:

"[[]§103D-106[]] Penalties. (a)  Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter shall be guilty of a misdemeanor[, and in addition to the applicable criminal penalty, shall be subject to removal from office] and shall be [liable]:

(1) Subject to removal from office;

(2) Liable to the State or the appropriate county for any sum paid by it in connection with the violation, and that sum, together with interest and costs, shall be recoverable by the State or county[.]; and

(3) Subject to imposition of an administrative fine under subsection (b).

(b)  After reasonable notice and reasonable opportunity to be heard, the chief procurement officer, after consultation with the using agency and the attorney general or corporation counsel, as applicable, may render a written decision or issue a written order providing for the assessment of an administrative fine against a person found to have violated this chapter; provided that:

(1) The amount of the fine shall be set out in rules adopted by the policy board pursuant to section 103D-202; and

(2) The written decision or order shall be final and conclusive, subject to an administrative review under section 103D-709."

     SECTION 2.  Section 103D-709, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The several hearings officers appointed by the director of the department of commerce and consumer affairs pursuant to section 26-9(f) shall have jurisdiction to review and determine de novo, any request from any bidder, offeror, contractor, person aggrieved under section 103D-106, or governmental body aggrieved by a determination of the chief procurement officer, head of a purchasing agency, or a designee of either officer under [sections] section 103D-310, 103D-701, or 103D-702."

     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.