STAND. COM. REP. NO. 1296

Honolulu, Hawaii

RE:    S.C.R. No. 28

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 28, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO ASSESS THE SOCIAL AND FINANCIAL EFFECTS OF REQUIRING HEALTH INSURERS TO PROVIDE COVERAGE FOR THE USE OF HOSPITAL BED MONITORING TECHNOLOGY,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the Auditor to study the social and financial effects of mandating health insurance coverage for the use of hospital bed monitoring technology.

     Your Committee received comments on this measure from Howard S. Garval, President and CEO, Child and Family Services; and Lisa Maruyama, President and CEO, Hawaii Alliance of Nonprofit Organizations.

     Your Committee has amended this measure by deleting its contents and title and replacing it with language from S.B. No. 777, S.D. 1.  As amended, this measure requests the Comptroller to establish a prompt payment task force to examine and resolve issues that prevent state agencies from making prompt payment for goods and services purchased through nonprofit organizations that deliver pivotal goods and services to individuals, families, and communities.

     Your Committee finds that many nonprofit organizations that provide goods and services on behalf of the State to individuals, families, and communities often do not receive prompt payment from the State for those goods and services.  In the last two years, many nonprofit organizations have in fact experienced significant delays in payments from the State.  These organizations have had to access their lines of credit or reduce their cash reserves in order to cover their cash flow needs for day-to-day operations.  In addition, late payments negatively impact the ability of such nonprofit organizations to fulfill their missions to benefit the community.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 28, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 28, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair