Hawaii Senate Bill SB1197

Hawaii 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/27/23
• Refer: 1/30/23
• Report Pass: 2/10/23
• Refer: 2/10/23
• Refer: 3/2/23
• Report Pass: 3/3/23
• Engrossed: 3/7/23
• Refer: 3/9/23

Caption

Relating To The University Of Hawaii.

Impact

The proposed legislation seeks to amend the Hawaii Revised Statutes by altering the designation of the Chief Procurement Officer through Section 103D-203. The transfer of procurement responsibilities to the Vice President allows for more transparent and accountable management of finances and contracts within the university system. Additionally, the bill includes the appropriation of funds necessary to implement this transition and issues general obligation bonds to support the renewal and modernization of university facilities.

Summary

SB1197 aims to restructure the leadership roles within the University of Hawaii by designating the Vice President for Budget and Finance and Chief Financial Officer as the Chief Procurement Officer, instead of the university president. This change seeks to eliminate potential conflicts of interest associated with consolidating such significant roles under one individual. The bill aligns with practices observed in many other public higher education systems across the United States, where procurement functions are clearly separated from institutional leadership.

Sentiment

Overall, the sentiment surrounding SB1197 has been supportive, particularly among stakeholders advocating for clearer governance and reduced potential for conflicts. Many legislators express the view that disentangling these roles introduces necessary oversight and enhances operational efficiency. However, there remains a discussion about the financial impact of the appropriations involved, including how effectively the released funds will be utilized toward facility improvements.

Contention

While there is considerable support for the restructuring of the procurement role, concerns have been raised regarding the long-term fiscal implications and the timeline set for the implementation of these changes. The effectiveness of separating the roles depends not only on the initial transition process but also on how well financial oversight is managed going forward. The bill's effective date of July 1, 2050, has also drawn scrutiny regarding its urgency and practicality in light of current needs at the university.