HB 381: Hawaii Council of Mayors Package; Procurement; Small Purchases

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 existing Hawaii Revised Statute relating to small purchases is due for an adjustment to dollar thresholds with regard to inflation.  With the costs of goods, services, and construction continuously rising, the items that qualify as a small purchase continue to dwindle.  These dollar amount thresholds were last adjusted in 1997.  Adjusting the dollar values of what qualifies as a small purchase with regard to inflation will afford agencies the same purchasing power as originally intended.

     SECTION 2.  Section 103D-305, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  Procurements of less than [$100,000] $           for goods or services, or [$250,000] $           for construction shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section."

     2.  By amending subsection (c) to read:

     "(c)  Procurements of [$25,000] $           to less than [$250,000] $           shall be made in accordance with small purchase procedures; provided that such small purchase procurements through an electronic system shall be required."

     SECTION 3.  Section 103D-310, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393.  Offerors shall produce documents to the procuring officer to demonstrate compliance with this subsection.  Any offeror making a false affirmation or certification under this subsection shall be suspended from further offerings or awards pursuant to section 103D-702.  The procuring officer shall verify compliance with this subsection for all contracts awarded pursuant to sections 103D-302, 103D-303, 103D-304, and 103D-306, and for contracts and procurements of [$2,500] $           or more awarded pursuant to section 103D-305; provided that the attorney general may waive the requirements of this subsection for contracts for legal services if the attorney general certifies in writing that comparable legal services are not available in this State."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Hawaii Council of Mayors Package; Procurement; Small Purchases

Description:

Amends the procurement thresholds for small purchases.  Effective 7/1/3000.  (HD1)

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

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 existing Hawaii Revised Statute relating to small purchases is due for an adjustment to dollar thresholds with regard to inflation.  With the costs of goods, services, and construction continuously rising, the items that qualify as a small purchase continue to dwindle.  These dollar amount thresholds were last adjusted in 1997.  Adjusting the dollar values of what qualifies as a small purchase with regard to inflation will afford agencies the same purchasing power as originally intended.

     SECTION 2.  Section 103D-305, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  Procurements of less than [$100,000] $150,000 for goods or services, or [$250,000] $360,000 for construction shall be made in accordance with procedures set forth in rules adopted by the policy board that are designed to ensure administrative simplicity and as much competition as is practicable; provided that multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; and provided further that procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section."

     2.  By amending subsection (c) to read:

     "(c)  Procurements of [$25,000] $100,000 to less than [$250,000] $360,000 shall be made in accordance with small purchase procedures; provided that such small purchase procurements through an electronic system shall be required."

     SECTION 3.  Section 103D-310, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393.  Offerors shall produce documents to the procuring officer to demonstrate compliance with this subsection.  Any offeror making a false affirmation or certification under this subsection shall be suspended from further offerings or awards pursuant to section 103D-702.  The procuring officer shall verify compliance with this subsection for all contracts awarded pursuant to sections 103D-302, 103D-303, 103D-304, and 103D-306, and for contracts and procurements of [$2,500] $10,000 or more awarded pursuant to section 103D-305; provided that the attorney general may waive the requirements of this subsection for contracts for legal services if the attorney general certifies in writing that comparable legal services are not available in this State."

     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.

Report Title:

Hawaii Council of Mayors Package; Procurement; Small Purchases

Description:

Increases the procurement thresholds for small purchases.

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

STAND. COM. REP. NO.  990

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 381

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 381 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this measure is to increase the procurement thresholds for small purchases.

     Your Committee received testimony in support of this measure from the Department of Corrections and Rehabilitation; Department of Transportation; Office of the Mayor of the City and County of Honolulu; and Honolulu Police Department.  Your Committee received testimony in opposition to this measure from the State Procurement Office.

     Your Committee finds that the existing small purchase dollar thresholds have not been adjusted since 1997, despite significant inflation and rising costs of goods, services, and construction.  This measure ensures that state agencies can maintain their intended purchasing power while preserving efficiency and competition in the procurement process.

     Your Committee has amended this measure by:

     (1)  Changing the procurement thresholds for small purchases to unspecified amounts; and

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 381, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 381, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,