STAND. COM. REP. NO. 156

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1197

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Higher Education, to which was referred S.B. No. 1197 entitled:

 

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to designate the Vice President for Budget and Finance and Chief Financial Officer of the University of Hawaii as the Chief Procurement Officer for the University.

 

     Your Committee received testimony in support of this measure from the Hawaii Regional Council of Carpenters and one individual.  Your Committee received testimony in opposition to this measure from the University of Hawaiʻi System.

 

     Your Committee finds that it is a matter of statewide concern that the President of the University of Hawaii serves simultaneously as the Chief Procurement Officer for the University.  Across the United States, the vast majority of public higher education institutions differentiate between institutional leadership and purchasing when assigning authority over procurement.  Whereas other institutions designate their Chief Financial Officer as Chief Procurement Officer, the University of Hawaii is the only institution of higher learning that concurrently names its President as Chief Procurement Officer.

 

     Your Committee further finds that the President's foremost interests are those of the University, whereas the foremost concern of the Chief Procurement Officer must be ethical public procurement in accordance with the Hawaii Public Procurement Code.  The interests of the University may at times come into conflict with ethical public procurement practices, as evinced by the University's renovation of the Clarence T.C. Ching Athletics Complex.  Therefore, the President of the University of Hawaii serving simultaneously as the Chief Procurement Officer leads to inevitable conflicts of interest.  This measure eliminates these conflicts of interest by designating the Vice President of Budget and Finance and Chief Financial Officer of the University of Hawaii as the Chief Procurement Officer for the University.  To effectuate this transfer of duties, an amendment to this measure is necessary to add an appropriation of funds to the University of Hawaii.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Inserting an appropriation of an unspecified amount to effectuate the transfer of duties of Chief Procurement Officer for the University of Hawaii;

 

     (2)  Inserting an appropriation of an unspecified amount for repair and maintenance of University of Hawaii campus buildings and infrastructure;

 

     (3)  Amending section 1 to reflect its amended purpose;

 

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

 

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1197, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1197, S.D. 1, and be referred to your Committee on Judiciary.

 

Respectfully submitted on behalf of the members of the Committee on Higher Education,

 

 

 

________________________________

DONNA MERCADO KIM, Chair