THE SENATE	S.B. NO.	3188
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO procurement for THE UNIVERSITY OF HAWAII.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Act 87, Session Laws of Hawaii 2013, was enacted to: (1) remove the university presidentꞌs full authority to act as chief procurement officer for the university for all procurement contracts under chapter 103D, Hawaii Revised Statutes, (2) transfer authority to the administrator of the state procurement office to act as chief procurement officer with respect to university construction contracts and university professional services contracts relating to construction, and (3) address concerns about the prudent and transparent management of public funds appropriated by the legislature and expended by the university for construction. Following its enactment, Act 87 resulted in a bifurcated procurement system at the university wherein a different set of rules and procedures applied depending on whether the procurement involved construction or construction related professional services for university construction projects. Requirements for construction or professional services furnished by licensees under chapter 464, Hawaii Revised Statutes, had to comply with the Hawaii public procurement code and procedures governing state executive branch agencies, while requirements for goods and services had to comply with the Hawaii public procurement code and university executive and administrative procedures governing university transactions.

In January 2016, the state procurement office issued its report to the legislature as required under Act 87, which documented the extensive oversight, reviews, and coordination between the university and the state procurement office on procurements involving construction and professional services related to construction. The conclusion of the state procurement office in the report was that "based on SPOꞌs review of 102 UH construction solicitations, UHꞌs Administrative Procedures, and 14 post-award Site Visits, SPO finds that UH is conducting construction procurements in a compliant, efficient and transparent manner." In the report, the state procurement office further set forth minimal recommendations for improvement and mentioned several university specific procedures as "best-practices."

Act 42, Session Laws of Hawaii 2018, reinstated and restored full authority to the university president to act as the universityꞌs chief procurement officer for all procurement contracts under chapter 103D, Hawaii Revised Statutes. Act 42 also included a repeal and reenactment date of June 30, 2021. Following the conclusion of the 2021 regular session, the legislature found that on June 30, 2021, the provisions of Act 42, Session Laws of Hawaii 2018, were repealed. During the 2021 first special session, the legislature passed Act 8, Special Session Laws of Hawaii 2021, which temporarily reenacted provisions amended by Act 42, Session Laws of Hawaii 2018, for the purpose of extending, for three years, the authority of the president of the University of Hawaii to act as the University of Hawaiiꞌs chief procurement officer for all procurement contracts under chapter 103D, Hawaii Revised Statutes.

The purpose of this Act is to remove the repeal and reenactment in Act 8, Special Session Laws of Hawaii 2021, to maintain the authority of the president of the university of Hawaii to act as the university of Hawaiiꞌs chief procurement officer for all procurement contracts under chapter 103D.

SECTION 2. Act 8, Special Session Laws of Hawaii 2021, is amended by amending section 16 to read as follows:

"SECTION 16. This Act shall take effect upon its approval; provided that:

(1) Parts IV and V of this Act shall apply retroactively to any actions taken after June 30, 2021, by the University of Hawaii pursuant to the sections of law amended by those parts; and

(2) Section 10 shall be repealed on June 30, 2024[; and

(3) Sections 12, 13, and 14 shall be repealed on June 30, 2024, and sections 103D-203(a) and 304A-2672, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 11, 2018]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall take effect on June 29, 2024.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

University of Hawaii; Procurement

Description:

Removes the repeal and reenactment in Act 8, Special Session Laws of Hawaii 2021, to maintain the authority of the President of the University of Hawaii to act as the University of Hawaiiꞌs chief procurement officer.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.