Procurement Organization

HRS div. 1, tit. 9, ch. 103D, pt. II

in effect

HRS §103D-201 Creation and membership of the procurement policy board

103D-201. Creation and membership of the procurement policy board (a) There is hereby created an autonomous state procurement policy board. The policy board shall be assigned, for administrative purposes only, to the department of accounting and general services. (b) The policy board shall consist of five members. Notwithstanding the limitations of section 78-4, the members of the board shall include: (1) The comptroller; (2) Two members appointed by the governor; provided that one member shall have five years of high-level construction procurement experience and one member shall have five years of high-level county procurement experience; (3) One member appointed by the president of the senate; provided that the member shall have five years of general procurement experience; and (4) One member appointed by the speaker of the house of representatives; provided that the member shall have five years of general procurement experience. Each appointed member shall have demonstrated sufficient business or professional experience to discharge the functions of the policy board. Except as provided in this section, the policy board members shall be subject to the requirements of section 26-34. No member of the policy board shall act concurrently as a chief procurement officer. The members of the policy board shall devote such time to their duties as may be necessary for the proper discharge thereof. (c) The policy board shall be assisted by employees of the department of accounting and general services, which shall provide at least one full-time support staff and funding necessary to support the policy board. (d) Members of the policy board shall be reimbursed for any expenses, including travel expenses, reasonably incurred in the performance of their duties. (e) The chairperson of the policy board shall be elected annually by a majority of its members from among all of its members; provided that the state comptroller shall not be eligible to serve as the chairperson. [L Sp 1993, c 8, pt of §2; am L 1997, c 190, §4 and c 352, §4; am L 1999, c 149, §13; am L 2002, c 148, §7; am L 2022, c 173, §2]

HRS §103D-202 Authority and duties of the policy board

103D-202. Authority and duties of the policy board Except as otherwise provided in this chapter, the policy board shall have the authority and responsibility to adopt rules, consistent with this chapter, governing the procurement, management, control, and disposal of any and all goods, services, and construction. All rules shall be adopted in accordance with chapter 91; provided that the policy board shall have the power to issue interim rules by procurement directives, which shall be exempt from the public notice, public hearing, and gubernatorial approval requirements of chapter 91. The interim rules shall be effective for not more than eighteen months. The policy board shall consider and decide matters of policy within the scope of this chapter including those referred to it by a chief procurement officer. The policy board shall have the power to audit and monitor the implementation of its rules and the requirements of this chapter, but shall not exercise authority over the award or administration of any particular contract, or over any dispute, claim, or litigation pertaining thereto. [L Sp 1993, c 8, pt of §2; am L 1994, c 186, §4; am L 1997, c 352, §23]

HRS §103D-203 Chief procurement officers

103D-203. Chief procurement officers (a) [Repeal and reenactment on June 30, 2028. (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 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. (b) The chief procurement officers for each of the several counties shall be: (1) The executive branch--the respective finance directors of the several counties, except as provided in paragraphs (3), (4), and (5); (2) The legislative branch--the respective chairpersons of the councils of the several counties; (3) The Honolulu, Kauai, and Maui boards or departments of water supply--the managers and chief engineers of the respective boards or departments of water supply as designated by county charter; (4) The Hawaii board of water supply--the manager of the board of water supply as designated by county charter; and (5) The semi-autonomous public transit agency--the director of the agency as designated by county charter; provided that the chief procurement officers designated under paragraphs (1), (2), (3), (4), and (5) shall not exercise their powers or duties over contracting in a manner contrary to the respective county's charter, ordinances, or rules adopted in accordance with chapter 91. (c) For purposes of applying this chapter to the judiciary, houses of the legislature, office of Hawaiian affairs, University of Hawaii, department of education, remaining departments of the executive branch and all governmental bodies administratively attached to them, and the several counties, unless otherwise expressly provided, "State" shall mean "judiciary", "state senate", "state house of representatives", "office of Hawaiian affairs", "University of Hawaii", "department of education", "executive branch", "county", "board of water supply" or "department of water supply", and "semi-autonomous public transit agency", respectively. [L Sp 1993, c 8, pt of §2; am L 1994, c 186, §8 and c 193, §§2, 5; am L 1996, c 262, §27; am L 1997, c 352, §§5, 19; am L 1999, c 149, §14; am L 2004, c 216, §17; am L 2006, c 283, §1; am L 2011, c 131, §2; am L 2013, c 87, §2; am L 2018, c 42, §§2, 6; am L Sp 2021, c 8, §§12, 16(3); am L 2024, c 111, §2] L 2024, c 111, §§3, 5(1).] The chief procurement officer for each of the following state entities shall be:

HRS §103D-204 Establishment of the state procurement office; administrator

103D-204. Establishment of the state procurement office; administrator (a) There shall be a state procurement office, placed for administrative purposes only, within the department of accounting and general services, which shall be headed by the administrator of the state procurement office. The administrator shall be the chief procurement officer for those governmental bodies of the executive branch as provided in section [103D-203(a)(8)]. The administrator shall be a full-time public official. The administrator shall serve a term of four years, and shall be paid a salary not to exceed eighty-seven per cent of the salary of the director of human resources development, without diminution during the administrator's term of office unless by general law applying to all deputies or assistants to department heads. (b) The administrator shall be appointed by the governor from a list of no less than three and no more than five names submitted by the policy board. The appointment of the administrator shall require the advice and consent of the senate. The administrator may only be removed from office by the governor, provided the governor shall give prior notification of such removal to the chairperson of the policy board, the president of the senate, and the speaker of the house of representatives. (c) The administrator shall have: (1) A minimum of five years experience in public procurement within twelve years preceding the date of appointment; and (2) Demonstrated executive and organizational ability. (d) The administrator shall operate independently of the comptroller. The administrator may appoint and dismiss a private secretary without regard to chapters 76 and 89, who shall serve at the administrator's pleasure. The comptroller shall provide support to permit the administrator to satisfy all of the administrator's responsibilities as the chief procurement officer for those governmental bodies of the executive branch of the State for which a chief procurement officer is not otherwise designated. [L Sp 1993, c 8, pt of §2; am L 1995, c 178, §5 and c 211, §7; am L 1997, c 352, §6; am L 2002, c 148, §8; am L 2005, c 226, §4]

HRS §103D-205 Authority and duties of the chief procurement officer

103D-205. Authority and duties of the chief procurement officer (a) For their respective jurisdictions and unless otherwise specifically provided in this chapter, each chief procurement officer shall serve as the central procurement officer for the officer's respective jurisdiction and: (1) Procure or supervise the procurement of all goods, services, and construction; (2) Exercise general supervision and control over all inventories of goods; (3) Sell, trade, or otherwise dispose of surplus goods; (4) Establish and maintain programs for the inspection, testing, and acceptance of goods, services, and construction; (5) Coordinate with the administrator regarding procurement policies, opportunities for statewide innovation implementation, and concerns; (6) Report procurement contract data pursuant to requirements established by the administrator, in the form and manner prescribed by the state procurement office; and (7) Assist and cooperate with the administrator regarding any compliance review by the administrator pursuant to section 103D-206. (b) Consistent with the provisions of this chapter and rules adopted by the policy board to implement its provisions, the chief procurement officers may adopt operational procedures to assist in the performance of these duties and responsibilities. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23; am L 2015, c 181, §1; am L 2016, c 253, §2]

HRS §103D-206 Additional duties of the administrator of the procurement office

103D-206. Additional duties of the administrator of the procurement office In addition to the duties referred to in section 103D-205, the administrator shall: (1) Perform periodic review of the procurement practices and procedures of all governmental bodies, in collaboration with the state procurement policy board, for compliance with the procurement code; (2) Assist, advise, and guide governmental bodies in matters relating to procurement; (3) Determine corrective actions; provided that if a procurement officer under the jurisdiction of the administrator of the state procurement office or a chief procurement officer of any of the other state entities under section 103D-203, fails to comply with any determination rendered by the administrator within thirty days from the date of the issuance of the determination, or longer if permitted by the administrator upon request by the procurement officer or a chief procurement officer, the procurement officer or chief procurement officer shall be subject to an administrative fine under section 103D-106, for every day of noncompliance; (4) Develop and administer a statewide procurement orientation and training program; (5) Develop, distribute, and maintain a procurement manual for all state procurement officials; (6) Develop, distribute, and maintain a procurement guide for vendors wishing to do business with the State and its counties; and (7) Develop and administer procurement automation systems, including methods to assess, charge, and collect a transaction fee for the use of the procurement automation systems to cover procurement automation system costs. [L Sp 1993, c 8, pt of §2; am L 2003, c 52, §3; am L 2005, c 166, §3; am L 2008, c 203, §1; am L 2016, c 253, §3; am L 2022, c 176, §3]

HRS §103D-207 Centralization of procurement authority

103D-207. Centralization of procurement authority Except as otherwise provided in sections 103D-208, 103D-209, and 103D-210, all rights, powers, duties, and authority relating to the procurement of goods, services, and construction, and the management, control, warehousing, sale, and disposal of goods, services, and construction now vested in, or exercised by, the governmental bodies of the State and counties are hereby transferred to the respective chief procurement officers. [L Sp 1993, c 8, pt of §2]

HRS §103D-208 Delegation of authority by the chief procurement officer

103D-208. Delegation of authority by the chief procurement officer Subject to the rules of the policy board, each chief procurement officer may delegate any authority or duty conferred upon the chief procurement officer by this chapter to designees or to any department, agency or official within their respective jurisdictions. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23]

HRS §103D-209 Authority to contract for certain services

103D-209. Authority to contract for certain services Except as provided in section 28-8.3 with respect to agencies of the State of Hawaii, any governmental body of this State may act as a purchasing agency and contract on its own behalf for professional services subject to this chapter and rules adopted by the policy board. The purchasing agency may consult with the chief procurement officer or the officer's designee when procuring these services. [L Sp 1993, c 8, pt of §2; am L 1994, c 92, §3 and c 188, §§2, 7; am L 1995, c 178, §§6, 16; am L 1998, c 11, §6] Note L 1996, c 262, §25 purports to extend repeal date of June 30, 1995 to June 30, 1998.

HRS §103D-211 Procurement rules

103D-211. Procurement rules (a) The procurement policy board shall adopt all rules necessary to carry out the purposes of this chapter and to implement its provisions in accordance with chapter 91. The policy board shall not delegate its power to adopt rules. (b) No rule shall change any commitment, right, or obligation of the State or of a contractor under a contract in existence on the effective date of such rule. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23]

HRS §103D-212 Collection of data concerning public procurement

103D-212. Collection of data concerning public procurement The chief procurement officer and the heads of all purchasing agencies shall cooperate in the preparation of statistical data concerning the procurement, usage, and disposition of all goods, services, and construction, and employ such trained personnel as may be necessary to carry out this function. All using agencies shall furnish such reports as the chief procurement officer may require concerning usage, needs, and stocks on hand, and the chief procurement officer may prescribe forms to be used by the using agencies in requisitioning, ordering, and reporting of goods, services, and construction. [L Sp 1993, c 8, pt of §2]

HRS §103D-213 Procurement advisory groups

103D-213. Procurement advisory groups (a) The chief procurement officer may appoint advisory groups to assist in the development of specifications or procurement in specific areas, and any other matters within the authority of the chief procurement officer. (b) Members of procurement advisory groups may be reimbursed for expenses incurred in the performance of their duties, subject to such expenditure limitations prescribed by the policy board and applicable law. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23]

HRS §103D-214 Repealed

103D-214. Repealed Note L 1997, c 352, §23 purports to amend this section. L 1995, c 178, §15.

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0103D/HRS_0103D-.htmFetched: 11/10/2026