CONFERENCE COMMITTEE REP. NO. 100

Honolulu, Hawaii

                 , 2017

RE:    S.B. No. 149

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 149, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose and intent of this measure is to:

     (1)  Repea1 the requirement that all applicants for procurement contracts for health and human services possess all licenses necessary to conduct the subject business; and

     (2)  Repeal the requirement that all contracts for health and human services include only costs, fees, and taxes that are reflected in the proposal.

     Your Committee on Conference finds that the requirement that potential contractors obtain licensure prior to being awarded a state contract for health or human services has served as a significant barrier to new providers entering the service system, as providers typically will not obtain licensure prior to being awarded a contract.  Your Committee on Conference further finds that the Hawaii Administrative Rules already require applicants to obtain necessary licenses prior to the start of contract services, and that the original intent of this law is no longer being served because its implementation has resulted in an overly restricted marketplace which has chilled healthy business competition amongst qualified health and human services providers.  Thus, your Committee on Conference finds that the repeal of this law is necessary for the efficient processing of contracts for health and human services.

     Your Committee on Conference has amended this measure by making it effective upon its approval.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 149, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 149, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ AARON LING JOHANSON Co-Chair	____________________________ DONNA MERCADO KIM Chair
____________________________ DANIEL HOLT Co-Chair	____________________________ JOSH GREEN Co-Chair
	____________________________ ROSALYN H. BAKER Co-Chair
	____________________________ BRICKWOOD GALUTERIA Co-Chair