Bill > SB1543

This bill aims to reduce government agencies' reliance on external consultants by implementing several key accountability measures. The legislation requires each purchasing agency to provide detailed justification for hiring external consultants, including demonstrating a lack of in-house expertise and conducting a cost-benefit analysis. Agencies will be required to cap their spending on consulting services at a specified percentage of their budget and seek legislative approval for consulting contracts exceeding a certain dollar amount. The bill mandates full disclosure of all consultant contracts, including costs, consultant names, and work scope, and requires agencies to submit annual reports to the legislature detailing their use of external consultants. Additionally, the Compliance Audit Unit will be tasked with conducting regular audits of consultant contracts to assess cost-effectiveness and compliance. The bill includes exceptions for highly technical expertise or short-term emergency needs, and it adds a new requirement for chief procurement officers to ensure that inherent government functions are not delegated to contractors. The legislation is designed to promote transparency, cost efficiency, and the development of in-house expertise within government agencies, with the ultimate goal of ensuring more responsible and effective state operations. The bill is set to take effect on January 1, 2491.

Budget and Finance, Government Affairs, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1543&year=2026