HOUSE OF REPRESENTATIVES
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO PROCUREMENT FOR THE UNIVERSITY OF HAWAII.
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 87, Session Laws of Hawaii 2013, was enacted to: (1) remove the university president's 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. 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. Procurements for construction or professional services furnished by licensees under chapter 464, Hawaii Revised Statutes, were required to comply with the Hawaii public procurement code and procedures governing state executive branch agencies, while procurements for goods and services were required to comply with the Hawaii public procurement code and university executive and administrative procedures governing university transactions.
Furthermore, 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 SPO's review of 102 UH construction solicitations, UH's Administrative Procedures, and 14 post-award Site Visits, SPO finds that UH is conducting construction procurements in a compliant, efficient and transparent manner."
Furthermore, Act 42, Session Laws of Hawaii 2018, was enacted to recognize that the university made significant changes to its policies and procedures including engaging in some of what the State Procurement Office refers to as "best-practices" and thus established a trial-period during which the university, through the university president, was given the opportunity to again be fully in control of its own procurement. Act 42 is set to sunset on June 30, 2021.
The purpose of this Act is to repeal the sunset provision in Act 42, Session Laws of Hawaii 2018, in order to continue the authority of the university president to act as the university's chief procurement officer for all procurement contracts under chapter 103D, Hawaii Revised Statutes.
SECTION 2. Act 42, Session Laws of Hawaii 2018, is amended by amending Section 6 to read as follows:
"SECTION 6. This Act shall take effect upon its approval[
provided that on June 30, 2021, this Act shall be repealed and sections
103D-203(a) and 304A-2672, Hawaii Revised Statutes, shall be reenacted in the
form in which they read on the day prior to the effective date of this Act]."
SECTION 3. Statutory material to be repealed is bracketed and stricken.
SECTION 4. This Act, upon its approval, shall take effect on June 29, 2021.
University of Hawaii; Chief Procurement Officer
Removes the sunset provision in Act 42, Session Laws of Hawaii 2018.
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