STAND. COM. REP. NO. 3188

Honolulu, Hawaii

RE: S.B. No. 3039

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 3039, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PURCHASES OF HEALTH AND HUMAN SERVICES,"

beg leave to report as follows:

The purpose and intent of this measure is to promote procurement efficiency, program success, and government accountability.

Specifically, this measure:

(1) Requires an agency purchasing health and human services to analyze a proposed cost or price and to document the agency's determination that the cost or price is fair and reasonable;

(2) Increases the small purchase threshold for health and human services and authorizes the Procurement Policy Board to adopt rules to provide an expedited method for purchasing agencies to competitively procure small purchases of health and human services;

(3) Makes amendments to section 103F-404, Hawaii Revised Statutes, to increase the efficiency of short-term treatment purchase of services; and

(4) Repeals section 103F-202, Hawaii Revised Statutes, thus abolishing the community council on purchase of health and human services.

Your Committees received written comments in support of this measure from the Department of Human Services, State Procurement Office, and one individual.

Your Committees received written comments in opposition to this measure from one individual.

Your Committees received written comments on this measure from the Hawaii Substance Abuse Coalition and Hawaii Alliance of Nonprofit Organizations.

Your Committees find that this measure will expedite the procurement of and reduce the administrative costs associated with urgently needed health and human services, while ensuring that transparency and accountability measures remain in effect.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3039, S.D. 1, and recommend that it pass Third Reading.

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

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair