HOUSE OF REPRESENTATIVES	H.B. NO.	2310
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROCUREMENT OF TREATMENT PURCHASE OF SERVICES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The treatment purchase of services statute, section 103F-404, Hawaii Revised Statutes, was established to provide purchasing agencies an alternative to competitively procuring for health and human services that (1) are sporadically used and (2) cannot be anticipated accurately on an annual basis. This method of procurement is intended to be used on a one-time, short-term basis. Due to its restrictive nature, the treatment method of procurement has limited demand since other methods can generally satisfy the requirement. As each department and chief procurement officer jurisdiction may have unanticipated, short-term requirements specific for its service needs, it is in the best interest of the State to allow each department to establish its own lists of qualified providers, when applicable. Therefore, the treatment purchase of service statute should be amended to allow departments and chief procurement officer jurisdictions to issue the request for statements of qualifications and to establish their own lists of qualified providers.

SECTION 2. Section 103F-404, Hawaii Revised Statutes, is amended to read as follows:

"[[]§103F-404[]] Treatment purchase of services. (a) Treatment services may be purchased in accordance with this section if [either or both of] the following circumstances are applicable:

(1) [Such] The needs for treatment services [may become necessary from time to time, but cannot be anticipated accurately on an annual or biennial basis; and] are unanticipated and arise from time to time;

[(2) When deferring treatment until solicitation, provider selection, and contract formation can be completed, the problem needing treatment would be rendered worse than at the time of diagnosis or assessment.

Contracts for treatment services shall be awarded on the basis of demonstrated competence and qualification for the type of service required, and at fair and reasonable prices.]

(2) The required service is for a one-time purchase for not more than $100,000 and no longer than one year;

(3) The services are industry standard services, that is, the services are generally accepted practices by the industry or profession; and

(4) The award of a contract is based on demonstrated competence and qualification for the type of service required and at fair and reasonable prices.

(b) [At a minimum, before the beginning of each fiscal year, the administrator] As applicable, the head of the purchasing agency shall, at a minimum, publish a notice describing the types of treatment services that may be needed throughout the year on a [periodic] sporadic basis and [inviting] invite providers engaged in providing these treatment services to submit current statements of qualification and expressions of interest to the [office.] purchasing agency. [The chief procurement officer may specify a uniform format for statements of qualifications.] Providers may amend these statements by filing an amended or new statement prior to the date designated for submission.

(c) The [administrator] head of the purchasing agency shall form an initial review committee for each profession, consisting of a minimum of three employees from a state agency or agencies with sufficient education, training, and licenses or credentials to evaluate the statements of qualifications which the [administrator] head of the purchasing agency receives in response to the notice published pursuant to subsection (b). The committee shall review and evaluate the submissions and other pertinent information, including references and reports, and prepare a list of qualified providers to provide treatment services during the fiscal year. Providers included on the list of qualified treatment providers may amend their statements of qualifications as necessary or appropriate. Providers shall immediately inform the [administrator] head of the purchasing agency of any changes in information furnished [which] that would disqualify the provider from being considered for a contract award.

(d) When the need to purchase treatment arises, the head of a purchasing agency shall select the provider most qualified to provide the needed treatment from the list of qualified providers.

(e) The head of the purchasing agency, or a designee, shall negotiate a contract, including a rate of compensation [which] that is fair and reasonable, established in writing, and based upon the estimated value, scope, nature, and complexity of the treatment services to be rendered, or use the rate established by the [administrator,] head of the purchasing agency, if any. If negotiations fail, upon written notice of an impasse to the provider selected under subsection (d), the head of the purchasing agency shall choose another provider from the list of qualified providers, and conduct further negotiations. Negotiations shall be conducted confidentially.

(f) Contracts for treatment services in excess of $100,000 or that last for more than one year shall [be procured using section 103F-402, competitive purchase of services, unless a waiver of this subsection is approved by the chief procurement officer.] utilize another method of procurement."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Procurement; Treatment Purchase of Service

Description:

Authorizes the departments to issue the request for statements of qualifications and to establish lists of qualified providers for treatment purchase of service. Effective upon approval.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.