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HI SB2662

HI SB2662
Relating To Government Accountability.


summary

Introduced
01/23/2026
In Committee
02/20/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Requires each purchasing agency to provide justification for hiring external consultants. Requires each agency to seek approval from the Legislature for consulting contracts exceeding a certain dollar amount. Requires annual reports to the Legislature. Requires the Compliance Audit Unit within the Office of the Auditor to conduct regular audits of agency consultant contracts to assess cost-effectiveness and compliance. Establishes exceptions. Requires each chief procurement officer to ensure that inherent government functions are not delegated to a contractor. Effective 1/1/2525. (SD1)

AI Summary

This bill aims to reduce the State of Hawaii's reliance on external consultants by requiring purchasing agencies to provide detailed justifications for hiring them, including demonstrating a lack of in-house expertise and conducting cost-benefit analyses compared to hiring state employees, and to publish these justifications for public and legislative review. Furthermore, agencies will need legislative approval for consulting contracts exceeding a specified dollar amount and must submit annual reports to the Legislature detailing the number of consultants used and the percentage of their budget spent on consulting services. The Compliance Audit Unit within the Office of the Auditor will regularly audit these contracts to ensure cost-effectiveness and compliance, with exceptions for specialized expertise unavailable internally and for short-term emergencies like disaster response. Additionally, chief procurement officers, who are responsible for overseeing the acquisition of goods and services, will be explicitly required to ensure that core government functions are not outsourced to contractors. These provisions are set to take effect on January 1, 2525.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (8)

Last Action

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. (on 02/20/2026)

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