SB 3230: DAGS; Procurement; Project Management Services; Budget Transfers; Certification; Fiscal Officers; Public Works Division; Special Project Branch; Positions; Appropriation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-27
Current Status:
Failed
(2026-03-30: Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services. Effective 7/1/3000. (HD1)
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Clarifies the inherently governmental and nondelegable responsibility of governmental agencies, which must retain ultimate authority, accountability, and decision-making over contract performance. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including funds for three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods. Effective 7/1/2525. (SD2)
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Clarifies the inherently governmental and nondelegable responsibility of state agencies, which must retain ultimate authority, accountability, and decision-making over contract performance. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including funds for three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods. Effective 7/1/2525. (SD1)
Prohibits all governmental bodies and public employees from procuring services for project management through non‑governmental third-party contracts, except for certain procurements of independent verification and validation contracts for information technology services. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates moneys to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including 3.0 full-time equivalent permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
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THE SENATE |
S.B. NO. |
3230 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§103D- Project management services; authorization. (a) Notwithstanding any law to the contrary, governmental bodies and public employees may procure project management services through non-governmental third-party contracts; provided that:
(1) All governmental agencies shall retain ultimate and final authority and accountability for project management as an inherently governmental responsibility;
(2) Oversight of each project management contract shall be performed by a designated public employee. Oversight shall include but not be limited to monitoring performance, approving government documents, negotiating cost and pricing, and awarding, modifying, and terminating contracts; and
(3) Third-party project management services may provide advisory, technical, or administrative support but shall not exercise decision-making authority or supervise public employees.
(b) Oversight of third-party contracts shall remain an inherently governmental and nondelegable responsibility of the state agency, which shall retain ultimate authority, accountability, and decision-making over contract performance."
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Project management" means a professional service that manages a project's schedule, cost, quality, safety, scope, and function, and ensures that the project is completed on time and within budget."
SECTION 3. Section 103D-326, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103D-326[]] Fiscal responsibility. Every contract modification, budget
transfer, change order, or contract price adjustment under a contract shall
be subject to prior written certification by the appropriate fiscal officer for
funding the project or the contract, as to the effect of the contract
modification, budget transfer, change order, or adjustment in contract
price on the total project budget or the total contract budget. In the event that the certification of the
fiscal officer discloses a resulting increase in the total project budget or
the total contract budget, the procurement officer shall not execute or make
such contract modification, budget transfer, change order, or adjustment
in contract price unless sufficient funds are available therefor, or the scope
of the project or contract is adjusted [so as] to permit the degree of
completion that is feasible within the total project budget or total contract
budget as it existed [prior to] before the contract modification,
budget transfer, change order, or adjustment in contract price under
consideration; provided[,] that, with respect to the validity, as
to the contractor, of any executed contract modification, budget transfer,
change order, or adjustment in contract price which the contractor has
reasonably relied upon, it shall be presumed that there has been compliance
with this section."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to establish a special project branch within the public works division of the department of accounting and general services, including three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 3000.
Report Title:
DAGS; Procurement; Project Management Services; Budget Transfers; Certification; Fiscal Officers; Public Works Division; Special Project Branch; Positions; Appropriation
Description:
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
3230 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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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:
SECTION 1. Section 103D-101, Hawaii Revised Statutes, is amended to read as follows:
"§103D-101 Requirements of ethical public procurement. (a) All public employees shall conduct and participate in public procurement in an ethical manner. In conducting and participating in procurement, public employees shall:
(1) Act as a fiduciary and trustee of public moneys;
(2) Remain independent from any actual or prospective bidder, offeror, contractor, or business;
(3) Act only in the public interest;
(4) Abide by the statutes and administrative rules relating to public procurement;
(5) Identify and maximize efficiencies in the public procurement process;
(6) Encourage economic competition by:
(A) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment; and
(B) Researching innovative goods and services to meet the public's needs;
(7) Avoid the intent and appearance of unethical behavior;
(8) Avoid social interactions with any actual or prospective bidder, offeror, contractor, business, or other interested parties during the procurement process;
(9) Maintain confidentiality in a manner that ensures a fair procurement process;
(10) Remain impartial in dealings with any actual or prospective bidder, offeror, contractor, business, or other interested parties; and
(11) Identify and eliminate any conflicts of interest.
(b) Any actual or prospective bidder, offeror, [[]contractor[]],
or business taking part in the conduct of public procurement, shall act in good
faith to practice purchasing ethics, and when applicable, display business
integrity as a responsible offeror through the public procurement process,
including but not limited to the following:
(1) Avoiding the intent and appearance of unethical behavior or business practices;
(2) Refraining from any activity that would create the appearance of impropriety or conflicts of personal interest and the interests of the State or counties;
(3) Identifying and eliminating any conflicts of interest; and
(4) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment.
(c) All parties involved in the negotiation, performance, or administration of state contracts shall act in good faith.
(d) Governmental bodies and public employees may procure project management services through non-governmental third-party contracts; provided that:
(1) All governmental agencies shall retain ultimate and final authority and accountability for project management as an inherently governmental responsibility;
(2) Oversight of each project management contract shall be performed by a designated public employee. Oversight shall include but not be limited to monitoring performance, approving government documents, negotiating cost and pricing, and awarding, modifying, and terminating contracts; and
(3) Third-party project management services may provide advisory, technical, or administrative support but shall not exercise decision-making authority or supervise public employees.
Oversight of third-party contracts shall remain an inherently governmental and nondelegable responsibility of the state agency, which must retain ultimate authority, accountability, and decision-making over contract performance."
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Project management" means a professional service that manages a project's schedule, cost, quality, safety, scope, and function, and ensures that the project is completed on time and within budget."
SECTION 3. Section 103D-326, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103D-326[]] Fiscal responsibility. Every contract modification, budget
transfer, change order, or contract price adjustment under a contract shall
be subject to prior written certification by the appropriate fiscal officer for
funding the project or the contract, as to the effect of the contract
modification, budget transfer, change order, or adjustment in contract
price on the total project budget or the total contract budget. In the event that the certification of the
fiscal officer discloses a resulting increase in the total project budget or
the total contract budget, the procurement officer shall not execute or make
such contract modification, budget transfer, change order, or adjustment
in contract price unless sufficient funds are available therefor, or the scope
of the project or contract is adjusted [so as] to permit the degree of
completion that is feasible within the total project budget or total contract
budget as it existed prior to the contract modification, budget transfer,
change order, or adjustment in contract price under consideration; provided[,]
that, with respect to the validity, as to the contractor, of any
executed contract modification, budget transfer, change order, or
adjustment in contract price which the contractor has reasonably relied upon,
it shall be presumed that there has been compliance with this section."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to establish a special project branch within the public works division of the department of accounting and general services, including three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2525.
Report Title:
DAGS; Procurement; Project Management Services; Budget Transfers; Certification; Fiscal Officers; Public Works Division; Special Project Branch; Positions; Appropriation
Description:
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Clarifies the inherently governmental and nondelegable responsibility of governmental agencies, which must retain ultimate authority, accountability, and decision-making over contract performance. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including funds for three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods. Effective 7/1/2525. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
3230 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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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:
SECTION 1. Section 103D-101, Hawaii Revised Statutes, is amended to read as follows:
"§103D-101 Requirements of ethical public procurement. (a) All public employees shall conduct and participate in public procurement in an ethical manner. In conducting and participating in procurement, public employees shall:
(1) Act as a fiduciary and trustee of public moneys;
(2) Remain independent from any actual or prospective bidder, offeror, contractor, or business;
(3) Act only in the public interest;
(4) Abide by the statutes and administrative rules relating to public procurement;
(5) Identify and maximize efficiencies in the public procurement process;
(6) Encourage economic competition by:
(A) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment; and
(B) Researching innovative goods and services to meet the public's needs;
(7) Avoid the intent and appearance of unethical behavior;
(8) Avoid social interactions with any actual or prospective bidder, offeror, contractor, business, or other interested parties during the procurement process;
(9) Maintain confidentiality in a manner that ensures a fair procurement process;
(10) Remain impartial in dealings with any actual or prospective bidder, offeror, contractor, business, or other interested parties; and
(11) Identify and eliminate any conflicts of interest.
(b) Any actual or prospective bidder, offeror, [[]contractor[]],
or business taking part in the conduct of public procurement, shall act in good
faith to practice purchasing ethics, and when applicable, display business
integrity as a responsible offeror through the public procurement process,
including but not limited to the following:
(1) Avoiding the intent and appearance of unethical behavior or business practices;
(2) Refraining from any activity that would create the appearance of impropriety or conflicts of personal interest and the interests of the State or counties;
(3) Identifying and eliminating any conflicts of interest; and
(4) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment.
(c) All parties involved in the negotiation, performance, or administration of state contracts shall act in good faith.
(d) Governmental bodies and public employees may procure project management services through non-governmental third-party contracts; provided that:
(1) All state agencies shall retain ultimate and final authority and accountability for project management as an inherently governmental responsibility;
(2) Oversight of each project management contract shall be performed by a designated public employee. Oversight shall include but not be limited to monitoring performance, approving government documents, negotiating cost and pricing, and awarding, modifying, and terminating contracts; and
(3) Third-party project management services may provide advisory, technical, or administrative support but shall not exercise decision-making authority or supervise public employees.
Oversight of third-party contracts shall remain an inherently governmental and nondelegable responsibility of the state agency, which must retain ultimate authority, accountability, and decision-making over contract performance."
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Project management" means a professional service that manages a project's schedule, cost, quality, safety, scope, and function, and ensures that the project is completed on time and within budget."
SECTION 3. Section 103D-326, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103D-326[]] Fiscal responsibility. Every contract modification, budget
transfer, change order, or contract price adjustment under a contract shall
be subject to prior written certification by the appropriate fiscal officer for
funding the project or the contract, as to the effect of the contract
modification, budget transfer, change order, or adjustment in contract
price on the total project budget or the total contract budget. In the event that the certification of the
fiscal officer discloses a resulting increase in the total project budget or
the total contract budget, the procurement officer shall not execute or make
such contract modification, budget transfer, change order, or adjustment
in contract price unless sufficient funds are available therefor, or the scope
of the project or contract is adjusted [so as] to permit the degree of
completion that is feasible within the total project budget or total contract
budget as it existed prior to the contract modification, budget transfer,
change order, or adjustment in contract price under consideration; provided[,]
that, with respect to the validity, as to the contractor, of any
executed contract modification, budget transfer, change order, or
adjustment in contract price which the contractor has reasonably relied upon,
it shall be presumed that there has been compliance with this section."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $728,927 or so much thereof as may be necessary for fiscal year 2026-2027 to establish a special project branch within the public works division of the department of accounting and general services, including three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2525.
Report Title:
DAGS; Procurement; Project Management Services; Budget Transfers; Certification; Fiscal Officers; Public Works Division; Special Project Branch; Positions; Appropriation
Description:
Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions. Clarifies the inherently governmental and nondelegable responsibility of state agencies, which must retain ultimate authority, accountability, and decision-making over contract performance. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including funds for three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods. Effective 7/1/2525. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
3230 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103D-101, Hawaii Revised Statutes, is amended to read as follows:
"§103D-101 Requirements of ethical public procurement. (a) All public employees shall conduct and participate in public procurement in an ethical manner. In conducting and participating in procurement, public employees shall:
(1) Act as a fiduciary and trustee of public moneys;
(2) Remain independent from any actual or prospective bidder, offeror, contractor, or business;
(3) Act only in the public interest;
(4) Abide by the statutes and administrative rules relating to public procurement;
(5) Identify and maximize efficiencies in the public procurement process;
(6) Encourage economic competition by:
(A) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment; and
(B) Researching innovative goods and services to meet the public's needs;
(7) Avoid the intent and appearance of unethical behavior;
(8) Avoid social interactions with any actual or prospective bidder, offeror, contractor, business, or other interested parties during the procurement process;
(9) Maintain confidentiality in a manner that ensures a fair procurement process;
(10) Remain impartial in dealings with any actual or prospective bidder, offeror, contractor, business, or other interested parties; and
(11) Identify and eliminate any conflicts of interest.
(b)
Any actual or prospective bidder, offeror, [[]contractor[]],
or business taking part in the conduct of public procurement, shall act in good
faith to practice purchasing ethics, and when applicable, display business
integrity as a responsible offeror through the public procurement process,
including but not limited to the following:
(1) Avoiding the intent and appearance of unethical behavior or business practices;
(2) Refraining from any activity that would create the appearance of impropriety or conflicts of personal interest and the interests of the State or counties;
(3) Identifying and eliminating any conflicts of interest; and
(4) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment.
(c) All parties involved in the negotiation, performance, or administration of state contracts shall act in good faith.
(d) Governmental bodies and public employees shall not procure services for project management through non-governmental third-party contracts; provided that this subsection shall not apply to the procurement of independent verification and validation contracts for information technology services if approved by the agency's respective chief procurement officer, as provided under section 103D-203."
SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Project management" means a professional service that manages a project's schedule, cost, quality, safety, scope, and function, and ensures that the project is completed on time and within budget."
SECTION 3. Section 103D-326, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103D-326[]]
Fiscal responsibility. Every
contract modification, budget transfer, change order, or contract price
adjustment under a contract shall be subject to prior written certification by
the appropriate fiscal officer for funding the project or the contract, as to
the effect of the contract modification, budget transfer, change order,
or adjustment in contract price on the total project budget or the total
contract budget. In the event that the
certification of the fiscal officer discloses a resulting increase in the total
project budget or the total contract budget, the procurement officer shall not
execute or make such contract modification, budget transfer, change
order, or adjustment in contract price unless sufficient funds are available
therefor, or the scope of the project or contract is adjusted so as to permit
the degree of completion that is feasible within the total project budget or
total contract budget as it existed prior to the contract modification, budget
transfer, change order, or adjustment in contract price under
consideration; provided, that with respect to the validity, as to the
contractor, of any executed contract modification, budget transfer,
change order, or adjustment in contract price which the contractor has
reasonably relied upon, it shall be presumed that there has been compliance
with this section."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $728,927 or so much thereof as may be necessary for fiscal year 2026-2027 to establish a special project branch within the public works division of the department of accounting and general services, including three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2026.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
DAGS; Procurement; Ethical Public Procurement; Budget Transfers; Certification; Fiscal Officers; Public Works Division; Special Project Branch; Positions; Appropriation
Description:
Prohibits all governmental bodies and public employees from procuring services for project management through non‑governmental third-party contracts, except for certain procurements of independent verification and validation contracts for information technology services. Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget. Appropriates moneys to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including 3.0 full-time equivalent permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
|
Status
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|---|---|
| Mar 30, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4). |
| Mar 30, 2026 | Reported from LAB (Stand. Com. Rep. No. 1458-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 24, 2026 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none. |
| Mar 20, 2026 | Bill scheduled to be heard by LAB on Tuesday, 03-24-26 9:30AM in House conference room 309 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to LAB, FIN, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 384) in amended form (SD 2). |
| Mar 10, 2026 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 5, 2026 | 48 Hrs. Notice 03-10-26. |
| Mar 5, 2026 | Reported from WAM (Stand. Com. Rep. No. 2788) with recommendation of passage on Third Reading, as amended (SD 2). |
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Feb 25, 2026 | The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference. |
| Feb 23, 2026 | The committee(s) on WAM will hold a public decision making on 02-25-26 10:56AM; Conference Room 211 & Videoconference. |
| Feb 20, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 20, 2026 | Reported from GVO (Stand. Com. Rep. No. 2570) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 17, 2026 | The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in GVO were as follows: 4 Aye(s): Senator(s) McKelvey, Hashimoto, Moriwaki, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Gabbard. |
| Feb 12, 2026 | The committee(s) on GVO deferred the measure until 02-17-26 3:00PM; Conference Room 225 & Videoconference. |
| Feb 10, 2026 | The committee(s) on GVO deferred the measure until 02-12-26 3:00PM; CR 225 & Videoconference. |
| Feb 6, 2026 | The committee(s) on GVO has scheduled a public hearing on 02-10-26 3:10PM; Conference Room 225 & Videoconference. |
| Feb 2, 2026 | Referred to GVO, WAM. |
| Jan 28, 2026 | Passed First Reading. |
| Jan 28, 2026 | Introduced. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Mar 24, 2026 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Labor |
Passed |
|
| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
|
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
|
| Feb 17, 2026 | The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Government Operations |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Council of Engineering Companies of Hawaii | ** Against | |
| Chamber of Commerce Hawaii | *** Against | Mar 23, 2026 |
| Department of Accounting and General Services | *** Support | Mar 23, 2026 |
| Department of Education | *** Against | Feb 10, 2026 |
| Legislative Advocacy Committee of the American Institute of Architects, Hawaiʻi State Council | ** Against | |
| State Procurement Office | *** Support | Mar 23, 2026 |
STAND. COM. REP. NO. 2788
Honolulu, Hawaii
RE: S.B. No. 3230
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 3230, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PROCUREMENT,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the effectiveness of public procurement in the State.
Specifically, this measure:
(1) Authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts under certain conditions;
(2) Requires every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget; and
(3) Appropriates moneys to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services to provide specialized expertise and staff resources to support certain complex, high-profile capital improvement program projects.
Your Committee received written comments in support of this measure from the Department of Accounting and General Services.
Your Committee received written comments in opposition to this measure from the Chamber of Commerce Hawaii.
Your Committee received written comments on this measure from the Department of Education and State Procurement Office.
Your Committee finds that certain agencies procure external consultants to provide project management services that agency staff are unable to provide due to limited staffing or lack of highly specialized technical skills, experience, or knowledge. Your Committee further finds that these external consultants assist agencies to deliver projects in a timely and efficient manner.
Your Committee has amended this measure by:
(1) Clarifying that all governmental agencies, rather than only state agencies, retain ultimate and final authority and accountability for project management, as suggested in written comments from the State Procurement Office; and
(2) Changing the appropriation amount to an unspecified amount to facilitate further discussion on the measure.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3230, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3230, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
STAND. COM. REP. NO. 2570
Honolulu, Hawaii
RE: S.B. No. 3230
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Government Operations, to which was referred S.B. No. 3230 entitled:
"A BILL FOR AN ACT RELATING TO PROCUREMENT,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Prohibit all governmental bodies and public employees from procuring services for project management through non‑governmental third-party contracts, except for certain procurements of independent verification and validation contracts for information technology services;
(2) Require every budget transfer to receive prior written certification from an appropriate fiscal officer as to the effect the budget transfer will have on the total project budget or the total contract budget;
(3) Appropriate funds to establish a Special Project Branch within the Public Works Division of the Department of Accounting and General Services, including funding for three full-time equivalent (3.0 FTE) permanent positions, to provide specialized expertise and staff resources that support the Division's implementation of certain complex, high-profile capital improvement program projects using innovative, non‑traditional delivery methods.
Your Committee received testimony in opposition to this measure from the American Council of Engineering Companies of Hawaii; Legislative Advocacy Committee of the American Institute of Architects, Hawaiʻi State Council; and one individual.
Your Committee received comments on this measure from the Department of Accounting and General Services, State Procurement Office, and Department of Education.
Your Committee finds that there has been a history of projects, including the Honolulu Authority for Rapid Transportation project and Daniel K. Inouye International Airport cargo facility project, that have engaged in the practice of "consultants managing consultants", in which the relevant agencies directly contracted with a prime consultant to manage and direct the services of multiple other prime consultants with whom the agency has also directly contracted. Your Committee further finds that in some instances, this practice can result in the dilution of agency oversight, obscured lines of responsibility and accountability, and contribute to cost overruns, delays, and reduced fiscal control. This measure establishes clear limitations on procuring project management services, thereby promoting greater fiscal accountability and oversight.
Your Committee notes the concerns raised in testimony by the State Procurement Office that prohibiting governmental bodies and public employees from procuring project management services through nongovernmental third-party contracts may hinder agencies' ability to deliver projects effectively and efficiently, and would transfer responsibility and liability from prime consultants to procuring agencies, requiring additional resources and funding. Your Committee acknowledges that while a categorical prohibition raises concerns, oversight of third-party contracts remains an inherently governmental and nondelegable responsibility of the state agency, which must retain ultimate authority, accountability, and decision-making over contract performance. See State Procurement Office Procurement Circular No. 2014-14 (September 12, 2014).
To address the concerns raised by the State Procurement Office, while preserving the inherently governmental responsibilities of purchasing agencies, your Committee has amended this measure by:
(1) Deleting language that would have prohibited governmental bodies and public employees from procuring services for project management through non-governmental third-party contracts;
(2) Inserting language that authorizes governmental bodies and public employees to procure project management services through non-governmental third-party contracts; provided that:
(A) All state agencies retain ultimate and final authority and accountability for project management as an inherently governmental responsibility;
(B) Oversight of each project management contract be performed by a designated public employee; and
(C) Third-party project management services may provide advisory, technical, or administrative support but not exercise decision-making authority or supervise public employees.
(3) Inserting language clarifying that oversight of third‑party contracts shall remain an inherently governmental and nondelegable responsibility of the state agency, which must retain ultimate authority, accountability, and decision-making over contract performance;
(4) Inserting an effective date of July 1, 2525, to encourage further discussion;
(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 Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3230, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3230, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Government Operations,
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________________________________ ANGUS L.K. MCKELVEY, Chair |
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Date
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Testimony PDF
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| Mar 23, 2026 | SB3230_SD2_TESTIMONY_LAB_03-24-26_.PDF |
| Feb 24, 2026 | SB3230_SD1_TESTIMONY_WAM_02-25-26_.PDF |
| Feb 10, 2026 | SB3230_TESTIMONY_GVO_02-10-26_.PDF |
Discussed in Hearing
35SEC
House Standing Committee on Labor
2MIN
Senate Standing Committee on Agriculture and Environment
2MIN
Senate Standing Committee on Government Operations
2MIN
Senate Standing Committee on Health and Human Services
2MIN
Senate Standing Committee on Public Safety and Military Affairs
15SEC
Senate Standing Committee on Agriculture and Environment
15SEC
Senate Standing Committee on Government Operations
2MIN
Senate Standing Committee on Government Operations
Bill Author
