STAND. COM. REP. NO. 1202

Honolulu, Hawaii

RE: H.B. No. 882

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred H.B. No. 882, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require purchasing agencies to make a written determination that the amount of a contracting action for purchases of health and human services is fair and reasonable;

(2) Amend the selection process and composition of the Procurement Policy Board;

(3) Amend the circumstances for when treatment services may be purchased and the procedure to purchase such services;

(4) Increase the small purchase threshold; and

(5) Repeal the establishment of the Community Council on Purchase of Health and Human Services.

Your Committees received testimony in support of this measure from the State Procurement Office. Your Committees received comments on this measure from Catholic Charities Hawai‘i, PHOCUSED, and Hawaii Substance Abuse Coalition.

Your Committees find that the Community Council, established by section 103F-202, Hawaii Revised Statutes, has not met since 2010. Your Committees further find that the Community Council was valuable and necessary when it was established, but since that time, the focus of health and human services procurements has changed. Therefore, it is appropriate to now repeal the establishment of the Community Council.

Your Committees recognizes the testimony of Catholic Charities Hawai‘i, which urged that a representative of either the Hawaii Alliance of Nonprofit organizations (HANO) or Protecting Hawaii’s Ohana, Children, Under-Served, Elderly & Disabled (PHOCUSED) sit on the Policy Board. Therefore, your Committees have amended this measure by:

(1) Requiring that a member of either HANO or PHOCUSED, or similar organization, be a member of the policy board; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 882, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 882, H.D. 1, S.D. 1, and be referred to your Committees on Government Operations and Judiciary and Ways and Means.

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

________________________________ JOY A. SAN BUENAVENTURA, Chair

________________________________ JARRETT KEOHOKALOLE, Chair