THE SENATE	S.B. NO.	3369
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

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 procurement activities throughout the State may not be consistently compliant with chapters 103D (the Hawaii Public Procurement Code) and 103F (relating to purchases of health and human services), Hawaii Revised Statutes, and the administrative rules adopted pursuant to those chapters. Many purchasers conduct procurement activities as part of their "other duties as assigned," and have minimal training and experience in public procurement. This can lead to mistakes resulting in increased costs to the government.

Accordingly, the purpose of this Act is to:

(1) Establish a working group to develop a plan for the phased consolidation of procurement services and staff within executive branch agencies within a five-year timespan, excluding the department of education, Hawaii health systems corporation, and university of Hawaii; and

(2) Appropriate moneys to the state procurement office to support the activities of the working group.

SECTION 2. (a) There is established a procurement services consolidation working group, which shall:

(1) Develop a plan for the phased consolidation of all state executive branch procurement services and staff within five years, except the department of education, Hawaii health systems corporation, and university of Hawaii, under the state procurement office. The plan shall include:

(A) An identification of the specific positions and functions to be transferred to the state procurement office from each department;

(B) Proposed dates of transfer for each position and function;

(C) Proposed procurement facility, personnel, and operational infrastructure needs of the consolidated procurement agency, with projections on future integration needs as additional agencies' procurement staff and services are added;

(D) Recommendations to enable the state procurement office to provide expert support to the procurement activities of all state agencies to meet the needs of the agencies and the public; and

(E) Recommendations to ensure that agency services are not interrupted during the consolidation; and

(2) Make recommendations to attract high quality procurement professionals to the State, including the use of internships and the feasibility of exempting certain positions from the requirements of chapters 76 and 89, Hawaii Revised Statutes.

(b) Members of the working group shall include:

(1) The administrator of the state procurement office, who shall serve as chairperson;

(2) The head of each principal executive branch department, except the department of education and university of Hawaii, or that person's designee; and

(3) Any other person that the administrator of the state procurement office wishes to invite to serve on the working group.

(c) The working group shall be administratively attached to the department of accounting and general services. The state procurement office shall provide administrative support to the working group.

(d) No later than twenty days prior to the convening of the regular session of 2023, the working group shall submit to the legislature a report of its findings and recommendations, including:

(1) The plan for the phased consolidation of state procurement services developed pursuant to subsection (a)(1), including a detailed five-year phase-in schedule;

(2) Recommendations to attract high quality procurement professionals to the State; and

(3) Any proposed legislation.

(e) The working group shall dissolve on June 30, 2023.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2022-2023 for the state procurement office to support the activities of the procurement services consolidation working group, including the hiring of staff and the creation of a phased consolidation plan.

The sum appropriated shall be expended by the state procurement office for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2022.

INTRODUCED BY:

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Report Title:

Procurement; SPO; Phased Consolidation Plan; Working Group; Report; Appropriation

Description:

Establishes a procurement services consolidation working group, which shall develop a plan for the phased consolidation of all state executive branch procurement services and staff within five years, except those of the Department of Education, Hawaii Health Systems Corporation, and University of Hawaii, under the State Procurement Office. Requires the working group to recommend ways to attract high quality procurement professionals to the State. Appropriates moneys.

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