Hawaii Senate Bill SB1306

Hawaii 2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/27/25
• Report Pass: 2/12/25
• Refer: 2/12/25

Caption

RELATING TO PROCUREMENT.

Summary

SB1306 makes two related changes to Hawaii procurement law. First, it creates a State Procurement Automation System Special Fund in the state treasury to receive vendor-collected transaction fees associated with the state’s procurement automation system. Those monies would be administered by the State Procurement Office and used for the system’s administration, management, operation, maintenance, upgrades, and expansion. The bill is intended to give the State direct control over fee revenue that, under the existing framework, has been held in trust by the system vendor. Second, the bill updates the list of chief procurement officers in section 103D-203, Hawaii Revised Statutes, to expressly include the executive director of the School Facilities Authority. It also makes a conforming amendment to section 103D-204 so the State Procurement Office’s authority aligns with that revised list. The bill’s stated purpose is to improve procurement accountability and keep the procurement automation system current with industry standards.

Impact

The bill would amend chapter 103D, Hawaii Revised Statutes, by adding a new special fund and revising the statutory designation of chief procurement officers. It would require transaction fees collected under the procurement automation system to be deposited into the new special fund, rather than remaining outside direct state control, and would authorize expenditures from that fund for procurement system operations and improvements. It also makes a housekeeping change to procurement governance by naming the School Facilities Authority executive director as a chief procurement officer, consistent with existing law governing that authority.

Sentiment

The available legislative history suggests broad support and little visible opposition. The Senate Government Operations committee passed the bill with amendments by a 4-0 vote, and the measure later advanced on second reading and was referred onward to WAM. The bill’s findings emphasize efficiency, cost savings, and accountability, indicating a generally favorable view of the procurement automation system and the need to formalize its funding structure.

Contention

The main issue addressed by the bill is not a policy dispute over whether the procurement automation system should exist, but rather how its transaction fees are controlled and spent. The bill responds to a gap in current law: fees are being collected but held in trust by the vendor instead of being deposited into a state special fund. A secondary point is the technical correction to procurement leadership for the School Facilities Authority, which appears to be a noncontroversial conforming change rather than a contested policy shift.