THE SENATE	S.R. NO.	195
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

SENATE RESOLUTION

urging the procurement policy board to amend AND CLARIFY the administrative rules RELATING TO SMALL PURCHASES to allow THE expenditures for goods, services, and construction with an estimated total cost OF less than $5,000 to be AWARDED in aNY manner that THE purchasing agency deems practical or convenient.

WHEREAS, the Legislature enacted the Hawaii Public Procurement Code under chapter 103D, Hawaii Revised Statutes, in 1993 to provide for fair and equitable treatment of all persons dealing with the procurement system; foster broad-based competition among vendors while ensuring accountability, transparency, fiscal responsibility, and efficiency in the procurement process; and increase confidence in the integrity of the system for expenditure of public funds; and

WHEREAS, the Hawaii Public Procurement Code authorizes the Procurement Policy Board to adopt administrative rules that govern the procurement, management, control, and disposal of any and all goods, services, and construction pursuant to section 103D-202, Hawaii Revised Statutes; and

WHEREAS, under section 103D-305, Hawaii Revised Statutes, small purchase procurements of less than $100,000 for goods or services or $250,000 for construction are subject to rule-based small purchase procurement procedures and must be procured through an electronic system, while small purchase procurements of less than $25,000 are exempt from the electronic system requirements and subject to administrative rules regarding minimum requirements for quotes; and

WHEREAS, under section 3-122-75, Hawaii Administrative Rules, the expenditures of goods, services, and construction with an estimated total cost of less than $5,000 are subject to procedures established by the chief procurement officer of each purchasing agency; and

WHEREAS, to ensure fiscal responsibility and efficiency in the procurement process, the source selection methods for small purchase procurements of less than $5,000 should be determined in a manner that is deemed practical or convenient by the purchasing agency; now, therefore,

BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that the Procurement Policy Board is urged to amend and clarify the administrative rules relating to small purchases to allow the expenditures for goods, services, and construction with an estimated total cost of less than $5,000 to be awarded in any manner that the purchasing agency deems practical or convenient; and

BE IT FURTHER RESOLVED that the Procurement Policy Board is requested to issue interim rules by procurement directives to allow expenditures for goods, services, and construction with an estimated total cost of less than $5,000 to be awarded in any manner that the purchasing agency deems practical or convenient; and

BE IT FURTHER RESOLVED that the Procurement Policy Board is requested to audit and monitor the implementation of this administrative rule change pursuant to section 103D-202, Hawaii Revised Statutes, and to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2024; and

BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Chairperson of the Procurement Policy Board.

OFFERED BY:

_____________________________

Report Title:

Procurement Policy Board; Small Purchases; Administrative Rules