SB2995

Report Title:

Procurement Code

Description:

Exempts the natural energy laboratory of Hawaii from the procurement code.

THE SENATE	S.B. NO.	2995
TWENTY-THIRD LEGISLATURE, 2006
STATE OF HAWAII

A BILL FOR AN ACT

 

RELATING TO PROCUREMENT.

 

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

SECTION 1. A procurement exemption for the natural energy laboratory of Hawaii (NELHA) would make it more efficient in its procurement process and enable it to attract more competent service providers. Because NELHA is a unique agency that deals with various cutting edge technology projects, it is sometimes not practical for NELHA to go through the procurement code process to select the best services from competent contractors without long delays. Federal funds earmarked to NELHA are very difficult to pass through to contracted agencies under procurement code procedures. Allowing NELHA to make procurements without the necessity of going though a bid process would give NELHA the opportunity to work with universities and laboratories conducting research on a continual contract basis, particularly when federal monies are involved. NELHA is subject to periodic federal government audits in connection with the expenditure of federal funds.

The purpose of this Act is to grant a procurement exemption for the natural energy laboratory of Hawaii.

SECTION 2. Section 227D-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall not be subject to [the requirements of chapter] chapters 103 and 103D for project agreements, construction contracts, retail concession or tour-related contracts, or other contracts unless a project agreement with respect to a project or research and technology park shall require otherwise."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________