STAND. COM. REP. NO. 2171-26

Honolulu, Hawaii

, 2026

RE: S.C.R. No. 74

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Public Safety, to which was referred S.C.R. No. 74 entitled:

"SENATE CONCURRENT 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,"

begs leave to report as follows:

The purpose of this measure is to request 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.

Your Committee received testimony in support of this measure from one individual.

Your Committee finds that 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 circumstances. Your Committee further finds that the suspension of provisions of the Hawaii Public Procurement Code during a state of emergency could allow for no-bid contracts during that period. 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 there may be inconsistencies between agencies in how no-bid contracts are entered into during states of emergency. Your Committee also finds that an assessment of no-bid contracts over the last six years would provide information necessary to identify essential reforms to emergency procurement laws.

As affirmed by the record of votes of the members of your Committee on Public Safety that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 74 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Public Safety,

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DELLA AU BELATTI, Chair