SB 3230

THE SENATE
S.B. NO.
3230
THIRTY-THIRD LEGISLATURE, 2026
S.D. 2
STATE OF HAWAII
H.D. 1
A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� SECTION 1.� Chapter 103D, Hawaii Revised Statutes, is
amended by adding a new section to part I to be appropriately designated and to
read as follows:
���� "�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
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not legislation or evidence of legislative intent.