SCR41 SD1.DOC

WHEREAS, nationally, state and local governments contract with nonprofit organizations-–particularly human service organizations-–to deliver pivotal services to individuals, families, and communities; and

WHEREAS, in October 2010, the Urban Institute released three related reports, including one titled "National Study of Nonprofit-Government Contracting, State Profiles", which outlined a variety of problems faced by these nonprofits; and

WHEREAS, key problems included payments that fail to cover full program costs; complex and time-consuming applications and reporting; changes to contractual and grant agreements; and late payments; and

WHEREAS, in Hawaii, one hundred sixty-one human service nonprofit organizations provided services to state and county government in 2009, and fifty per cent of the nonprofit organizations reported problems with late payments, which is substantially higher than the national average of forty-one per cent; and

WHEREAS, small businesses that contract with government agencies report the same concerns and face the same negative consequences, and both nonprofit organizations and businesses struggle to make ends meet in an economy that has faltered; and

WHEREAS, upon adoption of Senate Concurrent Resolution No. 28, S.D. 2, in 2011, the Comptroller established a prompt payment task force and invited the initial members of the task force; and

WHEREAS, upon adoption of Senate Concurrent Resolution No. 40, S.D. 1, H.D. 1 in 2012, the prompt payment task force was renamed the government contracting task force, had its term extended, and its scope narrowed; and

WHEREAS, the government contracting task force has held at least four meetings since September 2012; and

WHEREAS, while the government contracting task force identified a number of areas of concern, the members have determined that further work by the task force is necessary to complete the tasks requested in Senate Concurrent Resolution No. 40, S.D. 1, H.D. 1 (2012); and

WHEREAS, in addition, recommendations of the task force will benefit from pilot projects involving the use of "dashboard" and other information technology infrastructure enhancements proposed for implementation in 2013; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that the government contracting task force is extended until June 30, 2013; and

BE IT FURTHER RESOLVED that all members of the government contracting task force are invited to remain and serve as members and that the chairperson of the task force may invite other members; and

BE IT FURTHER RESOLVED that the government contracting task force is requested to finalize recommendations that were initially recommended in the task force's 2012 interim report to the 2013 legislature to address issues that affect procurement for goods and services purchased through nonprofit organizations, including human service nonprofit organizations that deliver pivotal goods and services to individuals, families, communities, and other small businesses; and

BE IT FURTHER RESOLVED that in finalizing these recommendations, the government contracting task force is requested to:

(1) Report on its examination of state contracting processes, from the initial planning phase through service delivery, and issues relating to payment when invoices are submitted;

(2) Make recommendations on processes that can be simplified and standardized between government agencies, the State Procurement Office, the Department of Accounting and General Services, the Department of the Attorney General, and the parties contracted to deliver services; and

(3) Evaluate the "dashboard" demonstration project that utilizes designated contract areas in the Department of Health, Department of Human Services, and Department of Public Safety to test business process improvements or other approaches and make recommendations to streamline the contracting process, with the goal of clarifying problem areas and solutions for government agencies and the parties contracted to provide services; and

BE IT FURTHER RESOLVED that the government contracting task force is requested to submit a report of its findings and recommendations to the Legislature no later than June 30, 2013; and

BE IT FURTHER RESOLVED that the government contracting task force, upon the request of the Legislature, participate in a joint informational briefing to discuss its report; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chief of Staff, Office of the Governor; Chief Information Officer; Attorney General; Comptroller; Administrator of the State Procurement Office, Department of Accounting and General Services; Director of Finance; Director of Health; Director of Human Services; Chairperson of the Board of Directors of the Hawaii Alliance of Nonprofit Organizations; President of the Building Industry Association of Hawaii; Executive Director of The Pacific Resource Partnership; President of The Chamber of Commerce of Hawaii; Chairperson of the Senate Committee on Economic Development, Government Operations and Housing; Chairperson of the Senate Committee on Human Services; Chairperson of the Senate Committee on Public Safety, Intergovernmental and Military Affairs; Chairperson of the House of Representatives Committee on Economic Development and Business; Chairperson of the House of Representatives Committee on Human Services; and Chairperson of the House of Representatives Committee on Public Safety.

Report Title:

Prompt Payment Task Force; Government Contracting Task Force; Extend to 6/30/13

THE SENATE	S.C.R. NO.	41
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII