SR 104: Requesting the Auditor to conduct an audit of no-bid contracts issued by state and county agencies under proclamations declaring states of emergency during the six-year period between january 1, 2020, and december 31, 2025.

SENATE RESOLUTION

Requesting the Auditor to conduct an audit of no-bid contracts issued by state and county agencies under proclamations declaring states of emergency during the six-year period between january 1, 2020, and december 31, 2025.

     WHEREAS, section 103D-307, Hawaii Revised Statutes, establishes a framework for emergency procurements, in which heads of purchasing agencies may obtain goods or services or contract for construction essential to meet an emergency, under certain conditions; and

     WHEREAS, in times of an emergency, the Governor or the Mayor of a county may declare the existence of a state of emergency by issuing of a proclamation pursuant to section 127A‑14, Hawaii Revised Statutes; and

     WHEREAS, section 127A-13, Hawaii Revised Statutes, establishes a mechanism to "[s]uspend any law that impedes or tends to impede or be detrimental to the expeditious and efficient execution of, or to conflict with, emergency functions, including laws that . . . specifically are made applicable to emergency personnel"; and

     WHEREAS, the suspension of provisions of the Hawaii Public Procurement Code pursuant to chapter 103D, Hawaii Revised Statutes, during a state of emergency could allow for no-bid contracts during the period in which a state of emergency is in effect; and

     WHEREAS, however, the suspension of provisions of the Hawaii Public Procurement Code does not also suspend the responsibility of state and county agencies to exercise prudence with and take accountability for public funds; and

     WHEREAS, there may be inconsistencies between agencies in how no-bid contracts are entered into during states of emergency; and

     WHEREAS, the terms of certain public contracts entered into between the National Kidney Foundation of Hawaii and the City and County of Honolulu and other agencies during the Coronavirus Disease 2019 (COVID-19) pandemic have raised questions regarding the use of public moneys during states of emergency; and

     WHEREAS, an assessment of no-bid contracts over the last six years would provide information necessary to identify essential reforms to emergency procurement laws; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that the Auditor is requested to conduct an audit of no-bid contracts issued by state and county agencies under proclamations declaring states of emergency during the six-year period between January 1, 2020, and December 31, 2025; and

     BE IT FURTHER RESOLVED that the Auditor is requested to review the justifications and standards used by state and county agencies to issue no-bid contracts; and

     BE IT FURTHER RESOLVED that the Auditor is requested to review the standards and justifications used for vendor selections, what price valuations were used to determine that contracts were appropriately priced, and any other accountability standards used to evaluate the contracts; and

     BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Auditor.

Report Title: 

Auditor; No-Bid Contracts; Emergency Proclamations; States of Emergency; Emergency Procurements; State and County Agencies; Report