Bill Text: HI SB1306 | 2025 | Regular Session | Introduced
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-04 - The committee(s) on GVO deferred the measure until 02-06-25 3:00PM; Conference Room 225. [SB1306 Detail]
Download: Hawaii-2025-SB1306-Introduced.html
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THE SENATE |
S.B. NO. |
1306 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
In
2022, the legislature authorized a procurement automation system for the
executive branch and state agencies.
This procurement automation system increases efficiency, saves personnel
time, maintains consistency, mitigates confusion for both the buyer and
contractor, and produces accurate purchasing data to leverage economies of
scale. The legislature also authorized
the state procurement office to
implement a transaction fee imposed upon vendors using the procurement
automation system beginning in fiscal year 2021-2022. This fee is intended to pay for the
management of the procurement automation system, including but not limited to
implementation, legacy transition, maintenance, system training, and system
configuration. This fee is estimated to save
the state approximately $1.2 million in general funds each year and will assist
with funding the growth and enhancement of the procurement automation system.
While the legislature authorized the implementation of the procurement automation system and a transaction fee collected from vendors using the system, it stopped short of authorizing a state procurement automation system special fund to hold the transaction fee. Until a special fund is authorized and established, the fees are being held in trust by the vendor who developed the procurement automation system; the state procurement office does not have direct control of the fees. The establishment of a special fund would direct that all fees received by the state procurement office pursuant to section 103D-206(7), Hawaii Revised Statutes, shall be deposited into the state procurement automation system special fund to be administered by the state procurement office for the implementation and configuration of the procurement automation system's Marketplace and eProcurement system, as well as its maintenance, enhancement, and expansion of additional modules to remain relevant and current with industry standards for the benefit of all stakeholders statewide.
The purposes of this Act are to enhance procurement accountability by:
(1) Establishing the state procurement automation system special fund to receive the transaction fees from the procurement automation system to pay for its administration, management, operation, maintenance, and upgrade of the procurement automation system; and
(2) Aligning section 103D-203(a), Hawaii
Revised Statutes, with section 302A-1702, Hawaii Revised Statutes, by adding
the school facilities authority executive director as a chief procurement
officer.
SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by adding to part II a new section to be appropriately designated and to read as follows:
"§103D-
State procurement
automation system special fund; transaction fee. (a)
There is established in the state treasury the state procurement
automation system special fund to be administered by the state procurement
office and into which shall be deposited:
(1) Vendor-collected
transaction fees, pursuant to section 103D-206(7), for administration,
management, operation, maintenance, and upgrade of the procurement automation
system; and
(2) Appropriations made by the
legislature to the special fund.
(b) The state procurement automation special fund
shall be expended by the state procurement administrator for the purposes of
the administration, management, operation, maintenance, and upgrade of the procurement
automation system."
SECTION
3. Section 103D-203, Hawaii Revised
Statutes, is amended by amending subsection (a) to read as follows:
"(a) The chief procurement officer for each of the following
state entities shall be:
(1) The judiciary--the administrative director of the courts;
(2) The senate--the president of the senate;
(3) The house of representatives--the speaker of the house of representatives;
(4) The office of Hawaiian affairs--the chairperson of the board;
(5) The University of Hawaii--the chief financial officer of the University of Hawaii;
(6) The department of education, excluding the Hawaii public library system--the superintendent of education;
(7) The Hawaii health systems corporation--the
chief executive officer of the Hawaii health systems corporation; [and]
(8) The school facilities authority--the executive director of the school facilities authority; and
[(8)] (9) The remaining departments of the executive
branch of the State and all governmental bodies administratively attached to
them--the administrator of the state procurement office of the department of
accounting and general services."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that the amendments made to section 103D-203(a), Hawaii Revised Statutes, by this Act shall not be repealed when section 103D-203(a), Hawaii Revised Statutes, is reenacted on June 30, 2028, pursuant to Section 16 of Act 8, Special Session Laws of Hawaii 2021, as amended by section 3 of Act 111, Session Laws of Hawaii 2024.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
State Procurement Automation Special Fund; Chief Procurement Officers; School Facilities Authority
Description:
Establishes a procurement automation system special fund and aligns section 103D-203(b), HRS, with section 302A-1702, HRS, which added the Executive Director of the School Facilities Authority as a 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.
