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THE SENATE |
S.B. NO. |
1227 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature finds, however,
that while the cost incurred by community-based organizations to provide their
services, including wages, utility expenses, and administrative costs, have
increased significantly during the past decade, government contract rates have
remained the same. Consequently, a
recent survey revealed that ninety-one per cent of community-based
organizations in the State were resourced below the full operating costs
required to provide the contracted services.
Community-based organizations have been struggling to fill the gap
between funding levels and demand for services, and some have publicly stated
that they may be forced to eliminate or reduce the services they provide.
Accordingly, the purpose of this Act is to
ensure the continued delivery of essential services by community-based
organization to the State's vulnerable populations by:
(1) Requiring contracts for services awarded to
community-based organizations by the department of health, department of
human services, or judiciary in
support of fulfilling their statutory mandates to individuals, families, and
communities in the State to include certain protections against inflation; and
(2) Appropriating funds to the department
of health, department of human services, and judiciary to increase
the contract price in existing contracts for services provided by community-based
organizations in support of fulfilling their statutory
mandates to individuals, families, and communities in the State.
SECTION 2.
Beginning January 1, 2026, contracts awarded to community-based
organizations by the department of health, department
of human services, or judiciary for
services in support of fulfilling their statutory mandates to individuals, families,
and communities in the State, including supporting
access to justice, shall:
(1) Be
for a term of multiple years; and
(2) Include a provision that requires
the contract price to be adjusted on an annual basis based on increases in the Consumer
Price Index for All Urban Consumers, or a successor index, as reported by the
United States Bureau of Labor Statistics.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling the department of health's statutory mandate toward individuals, families, and communities.
The sums appropriated shall be expended by the department of health for the purposes of this Act.
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling of the department of human services' statutory mandate toward individuals, families, and communities.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling the judiciary's statutory mandate toward individuals, families, and communities.
The sums appropriated shall be expended by the judiciary for the purposes of this Act.
SECTION 6. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
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Report Title:
DOH; DHS; Judiciary; Community-Based Organizations; Contract for Services; Access to Justice; Appropriations
Description:
Beginning 1/1/2026, requires contracts for services awarded to community-based organizations by the Department of Health, Department of Human Services, or Judiciary in support of fulfilling their statutory mandates to individuals, families, and communities in the State to include certain protections against inflation. Appropriates funds to the Department of Health, Department of Human Services, and Judiciary to increase the contract price in existing contracts for certain services provided by community-based organizations in support of fulfilling their statutory mandates to individuals, families, and communities in the State.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.