HB974

SECTION 1. The legislature finds that administrative review of determinations made by the chief procurement officer is handled by the department of commerce and consumer affairs. Since the agencies that are rendering a determination and reviewing the fairness of that determination are both state executive agencies, a possible conflict of interest arises. To enhance the procurement process and provide a more fair and impartial rendering and review of procurement determinations, this Act transfers the review of procurement determinations to the office of the ombudsman, a legislative agency.

SECTION 2. Section 96-3, Hawaii Revised Statutes, is amended to read as follows:

"§96-3 Assistance, staff, delegation, funding. The ombudsman shall appoint a first assistant, one or more administrative hearings officers pursuant to section 103D-709(a), and other officers and employees as may be necessary to carry out this chapter. All employees, including the first assistant, shall be hired by the ombudsman and shall serve at the ombudsman's pleasure. In determining the salary of each employee, the ombudsman shall consult with the department of human resources development and shall follow as closely as possible the recommendations of the department. Effective July 1, 2005, the first assistant's salary shall be not more than eighty-seven per cent of the salary of the ombudsman. The ombudsman and the ombudsman's full-time staff shall be entitled to participate in any employee benefit plan.

The ombudsman may delegate to the ombudsman's appointees any of the ombudsman's duties except those specified in sections 96-12 and 96-13; provided that during the absence of the ombudsman from the island of Oahu, or the ombudsman's temporary inability to exercise and discharge the powers and duties of the ombudsman's office, the powers and duties as contained in sections 96-12 and 96-13 shall devolve upon the first assistant during the ombudsman's absence or inability.

The funds for the support of the office of the ombudsman shall be provided for in the act providing for the expenses of the legislature."

SECTION 3. Section 96-5, Hawaii Revised Statutes, is amended to read as follows:

"§96-5 Jurisdiction. The ombudsman has jurisdiction to [~~investigate~~]:

(1) Investigate the administrative acts of agencies and [~~the ombudsman~~] may exercise the ombudsman's powers without regard to the finality of any administrative act[.]; and

(2) Review and determine de novo, pursuant to section 103D-709(a), determinations of the chief procurement officer, head of a purchasing agency, or a designee of either officer under sections 103D-310, 103D-701, or 103D-702."

SECTION 4. Section 96-6, Hawaii Revised Statutes, is amended to read as follows:

"§96-6 Investigation of complaints[.] duties. (a) The ombudsman may investigate any complaint which the ombudsman determines to be an appropriate subject for investigation under section 96-8.

(b) The ombudsman may investigate on the ombudsman's own motion if the ombudsman reasonably believes that an appropriate subject for investigation under section 96-8 exists.

(c) Pursuant to section 103D-709(a), the ombudsman shall assign an administrative hearings officer to review and determine de novo, determinations of the chief procurement officer, head of a purchasing agency, or a designee of either officer under sections 103D-310, 103D-701, or 103D-702."

SECTION 5. 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)~~] An administrative hearings officer in the office of the ombudsman shall have jurisdiction to review and determine de novo any request from any bidder, offeror, contractor 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 103D-310, 103D-701, or 103D-702."

SECTION 6. Notwithstanding any other law to the contrary, all the rights, powers, functions, and duties of the administrative hearings officer under the department of commerce and consumer affairs reviewing procurement matters shall be transferred to the office of the ombudsman.

The administrative hearings officer shall be transferred to the office of the ombudsman and perform the same functions and continue to perform the administrative hearing officer's regular duties upon the transfer, subject to state personnel laws and this Act.

The administrative hearings officer shall not suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act; provided that subsequent changes in status may be made pursuant to applicable laws.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	974
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII