NOTICE OF PUBLIC HEARINGS
STATE PROCUREMENT OFFICE
STATE OF HAWAII
ON PROPOSED AMENDMENTS TO
HAWAII ADMINISTRATIVE RULES
TITLE 3, CHAPTERS 120, 121, 125, 128, and 131

Pursuant to the provisions of Chapters 91 and 103D, Hawaii Revised Statutes (HRS), notice is hereby given that the State Procurement Office will hold public hearings at the following islands, dates, times, and locations.

Island Date and Time Location

Oahu July 13, 2009 Keoni Ana Building Videoconference Center
9:00 a.m. Keoni Ana Building
1177 Alakea Street, Room 302
Honolulu, Hawaii 96813

Hawaii July 13, 2009 Hilo Videoconference Center
9:00 a.m. Hilo State Office Building
75 Aupuni Street, Basement
Hilo Hawaii 96720

Maui July 13, 2009 Wailuku Videoconference Center
9:00 a.m. Wailuku Judiciary Building
2145 Main Street, First Floor
Wailuku, Hawaii 96793

Kauai July 13, 2009 Lihue Videoconference Center
9:00 a.m. Lihue State Office Building
3060 Eiwa Street, Basement
Lihue, Hawaii 96766

The State Procurement Office will accept testimony on proposed rule amendments to Chapters 3-120, General Provisions; 3-121, Procurement Organization; 3-125, Modifications and Terminations of Contracts; 3-128, Governmental Relations and Cooperative Purchasing; and 3-131, Compliance, Hawaii Administrative Rules (HAR). The proposed rule amendments are to implement the Hawaii Public Procurement Code (Code), Chapter 103D, HRS. The purpose of the Code is to promote economy, efficiency, effectiveness, and consistency in all procurements by the State and the several counties.

Proposed amendments to Chapter 3-120 General Provisions; Section 3-120-2 Definitions. Adds the definition for “person” and amends the definition for “state”; Section 3-120-4 Procurements exempt from chapter 103D, HRS. Changes the effective date for Exhibit A, Procurements Exempt From Chapter 103D, HRS, and changes the Procurement Policy Board’s review of Exhibit A from annually to as needed; Section 3-120-5 Procedures for requesting exemption and amendment. Removes specific names for the exemption request forms to make them generic; combines the notice and request forms into one form; and amends posting exemption request forms to an Internet site accessible to the public, rather than a physical location; Exhibit A, Procurements Exempt From Chapter 103D, HRS. Amends the language for various exemptions and adds two new exemptions.

Proposed amendments to Chapter 3-121 Procurement Organization; Section 3-121-1.01, Meetings. Added new section for meetings held by the Procurement Policy Board; Section 3-121-4, 3-121-9, 3-121-18, 3-121-28 Interim rules. Corrected spelling; Subchapter 5, titled, “Rulemaking Proceedings and Declaratory Rulings.” Added new subchapter for the Procurement Policy Board to adopt, amend, or repeal rules and to obtain declaratory rulings; Section 3-121-31 Adoption, amendment, or repeal of rules. Added new section for the Procurement Policy Board to adopt, amend, or repeal rules; Section 3-121-32 Declaratory ruling. Added new section for the Procurement Policy Board on declaratory ruling.

Proposed amendments to Chapter 3-125 Modifications and Terminations of Contracts; Section 3-125-2 Change orders in goods and services contracts. Amends the process and other minor changes for clarification; Section 3-125-3 Modifications to goods and services contracts. Amendments made for clarification; Section 3-125-4 Change orders in construction contracts. Amends the process and other minor changes for clarification; Section 3-125-12 Price adjustment in goods and services contracts. Amends the process for calculating price adjustments and other minor changes for clarification; Section 3-125-13 Price adjustment in construction contracts. Amends the process for calculating price adjustments and other minor changes; Section 3-125-23 Prompt payment by contractors to subcontractors. Amends the process for prompt payments to subcontractors and other minor changes.

Proposed amendments to Chapter 3-128 Governmental Relations and Cooperative Purchasing; Historical Note. Clarifies the rules replace rescinded interim rules previously adopted and effective on 12/07/06; Section 3-128-2 Cooperative purchasing subject to chapter 103D, HRS. Amends to require prior written Chief Procurement Officer approval before entering into a cooperative purchasing agreement; establishes public notice requirements for cooperative agreements; and prohibits agencies from entering into or “piggybacking” onto existing cooperative purchasing agreements; Section 3-128-3 Cooperative purchasing agreements between procurement units. Amends minor changes; Section 3-128-7 Procurement of goods produced or services performed by government institutions. Deleted “Ho’opono workshop” because it is not a government institution; Section 3-128-8 Compliance with federal requirement. Amends minor changes.

Proposed amendments to Chapter 3-131 Compliance; Changed title from ’Procurement Violations’ to ’Compliance’; Section 3-131-1 Definitions. Added definitions for “Business integrity,” “Purchasing ethics,” and expanded the role of a Reviewing Officer; Section 3-131-1.01 Applicability. Added a new section to include application to person, actual or prospective bidder, offeror, contractor or business; Section 3-131-1.02 Procurement code of ethics. Added a new section for standard of conduct code for government employees and persons; Section 3-131-4 Civil and criminal penalties. Amended to add provisions to assess penalties for both governmental employee or person, including an offeror; Section 3-131-5 Corrective action. Amended to clarify correction action of a “procurement” violation; Section 3-131-6 Report of findings and corrective actions. Amended to provide the requirements of a Report of Findings and Corrective Actions; Section 3-131-7 Interim rules. Repealed reference to prior interim rule and incorporated into Historical Notes; and Section 3-131-8 Administrative fines. Added a new section to provide the dollar amounts of and the process to be followed for the assessment of administrative fines.

Copies of the proposed rules are available to any interested person at the State Procurement Office, 1151 Punchbowl Street, Room 416, Honolulu, Hawaii 96813; or may be viewed at the State Procurement Office’s website at http://www.hawaii.gov/spo, click on “Statutes and Rules”.

One copy of the proposed rule amendments will be mailed to any interested person requesting a copy. For additional copies, a fee of ten cents per page plus postage, will be charged. The request may be made in writing to the Administrator, State Procurement Office, 1151 Punchbowl Street, Room 230-A, Honolulu, Hawaii 96813; by mail to P.O. Box 119, Honolulu, Hawaii 96810-0119; by facsimile to (808) 587-4703; or email to state.procurement.office@hawaii.gov .

All interested persons shall be afforded an opportunity to submit data, views, or arguments, at the time of the hearing; however, all submittals must be in writing by the date indicated below. All persons wishing to submit written statements must submit three (3) copies of the written statements to the Administrator, State Procurement Office, 1151 Punchbowl Street, Room 230-A, Honolulu, Hawaii 96813; by mail to P.O. Box 119, Honolulu, Hawaii 96810-0119; by facsimile to (808) 587-4703 by July 6, 2009; or email to state.procurement.office@hawaii.gov.