STAND. COM. REP. NO. 1449-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2027

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Health & Human Services and Housing, to which was referred S.B. No. 2027, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO APPROPRIATIONS TO ADDRESS HOMELESSNESS,"

beg leave to report as follows:

The purpose of this measure is to support the efforts of the Coordinated Statewide Homeless Initiative to prevent homelessness and provide rapid rehousing services statewide. This measure appropriates funds to the Department of Human Services to continue and improve the Coordinated Statewide Homeless Initiative and requires the Department to contract with a master contractor to manage subcontracts and expenditures for services provided through the Initiative.

Catholic Charities Hawai‘i, Aloha United Way, IMUAlliance, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Institute for Human Services, Partners in Care, Hawaii Appleseed Center for Law & Economic Justice, and a concerned individual submitted testimony in support of this measure. The Governor's Coordinator on Homelessness, Department of Human Services, Adult Mental Health Division of the Department of Health, Department of the Attorney General, and State Procurement Office provided comments.

Your Committees have amended this measure by:

(1) Changing the administrative fees that the master contractor may retain to be up to fifteen percent of the total amounts paid under the master contract between the master contractor and subcontractors;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committees note that in addition to the amendments that were adopted, the Department of the Attorney General also proposed:

(1) Including fiscal accountability safeguards that address upfront payment accountability measures, or alternatively, requiring incremental payments to the master contractor; and

(2) Deleting the provision exempting subcontracts entered into by the master contractor from statutory grant and State Procurement Code requirements.

Your Committees request that the State Procurement Office and the Department of the Attorney General collaborate to provide clear and consistent language related to "procurement" to your Committees on Health & Human Services, Housing, and Finance.

As affirmed by the records of votes of the members of your Committees on Health & Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2027, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2027, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Health & Human Services and Housing,

____________________________ TOM BROWER, Chair

____________________________ JOHN M. MIZUNO, Chair