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.

SR104

THE SENATE

S.R. NO.

104

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

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.

OFFERED BY:

_____________________________

Report Title:
�

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