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b JUSTIFICATION SHEET PROPOSER: Hawaii State Association of Counties TITLE: A BILL FOR AN ACT RELATING TO PROCUREMENT PURPOSE: To remove the requirement for local governments to comply with rule's adopted by the policy board and to place the decision-making power to use cooperative contracts within the discretion of local governments. MEANS: Amends §103D-802, Hawaii Revised Statutes (HRS), by deleting language pertaining to rules adopted by the policy board. NSTIFICATION: §103D-201 and §103D-202, HRS, establish a procurement policy boazd with the authority to adopt rules consistent with Chapter ]03D. Chapter ]03D is based on the Model Procurement Code. All states have adopted a version of the Model Procurement Code. Most states that allow cooperative purchasing do not have policy boards restricting a government's ability to participate in cooperative contracts. Currently, local governments in the State of Hawaii aze limited by the Hawaii Administrative Rules set by the policy boazd to choose whether to use cooperative contracts. This is true even if the cooperative contracts went through a competitive selection process similaz to the laws and rules of the State of Hawaii. Consequently, local governments may not be able to enter into a cooperative contract that is the most cost-effective choice for itself or for its taxpayers. Local governments are in the best position to assess their own needs and the needs of the people they serve. Therefore, local governments aze also in the best position to make competent decisions as to whether to use a cooperative contract. The. amendment would merely provide local governments with another option when deciding whether to enter into a cooperative contract. There may be contracts, other than the cooperative contract, that have gone through Hawaii's procurement process and are still more cost efficient for local governments. The amendment gives local governments another choice. pef.3anh:07-239b