Report Title:
Procurement; Audit
Description:
Requires the procurement policy board to conduct audits of two executive departments each year to ensure compliance with chapter 103D, HRS, and report results to the legislature. Also requires the procurement policy board to initiate or conduct follow-up audits of executive agencies that utilize procurement procedures that are not in compliance with the state procurement code or otherwise authorized by law.
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THE SENATE |
S.B. NO. |
2823 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
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STATE OF HAWAII |
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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 procurement policy office, in order to fully discharge its responsibilities, must take further steps to ensure compliance with chapter 103D, Hawaii Revised Statutes, by the executive agencies.
The purpose of this Act is to require the procurement policy office to conduct compliance audits of at least two executive agencies per year and to initiate or conduct follow-up audits of executive agencies that utilize procurement procedures that are not in compliance with the state procurement code or otherwise authorized by law.
SECTION 2. Section 103D-202, Hawaii Revised Statutes, is amended to read as follows:
"§103D-202 Authority and duties of the policy board. (a) Except as otherwise provided in this chapter, the policy board shall have the authority and responsibility to adopt rules, consistent with this chapter, governing the procurement, management, control, and disposal of any and all goods, services, and construction. All rules shall be adopted in accordance with chapter 91; provided that the policy board shall have the power to issue interim rules by procurement directives, which shall be exempt from the public notice, public hearing, and gubernatorial approval requirements of chapter 91. The interim rules shall be effective for not more than eighteen months.
(b) The policy board shall consider and decide matters of policy within the scope of this chapter including those referred to it by a chief procurement officer.
(c) The policy board [shall have the
power to] may audit and monitor the implementation of its rules and
the requirements of this chapter; but shall not
exercise authority over the award or administration of any particular contract,
or over any dispute, claim, or litigation pertaining thereto.
The policy board shall:
(1) Audit a minimum of two executive departments each year to ensure compliance with this chapter;
(2) Initiate or conduct follow-up audits of an executive agency that utilizes procurement procedures that are not in compliance with this chapter or otherwise authorized by law and that, given the circumstances, lead the policy board to believe that the executive agency intended to circumvent the application of this chapter; and
(3) Report the results of the compliance audits to the legislature no later than twenty days before the convening of each regular session."
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.
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INTRODUCED BY: |
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