STAND. COM. REP. NO. 849

Honolulu, Hawaii

RE: S.B. No. 1036

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 1036, S.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) Repeal the establishment of the Community Council on Purchase of Health and Human Services; and

(2) Establish a State Payor Committee.

Your Committees received testimony in support of this measure from the State Procurement Office. Your Committees received testimony in opposition to this measure from the Domestic Violence Action Center; Protecting Hawaii's Ohana, Children, Under Served, Elderly, and Disabled; and three individuals. Your Committees received comments on this measure from the Hawaii Substance Abuse Coalition and Catholic Charities Hawaii.

Your Committees find that the Community Council on Purchase of Health and Human Services was established in 1997 as an advisory body to provide input to the State Procurement Office to develop the rules, infrastructure, and procedures for procuring health and human services. Since its initiation, the focus of health and human services procurements has changed as the rules are well-established and providers and purchasing agencies are acclimated to the rules and associated procurement process. The most recent meeting of the Community Council on Purchase of Health and Human Services was held on April 22, 2010. A lack of quorum and Governor-appointed members have prevented further meetings. Additionally, your Committees find that state agencies and private providers can communicate and work together to refine and update procedures for planning, procuring, and contracting health and human services to meet today's needs without the statutory provisions relating to the purchase of health and human services. Therefore, abolishing the Council would have no impact on the public or any state and county agencies.

Your Committees have amended this measure by 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 Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1036, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1036, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair