STAND. COM. REP. NO. 572

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 149

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 149 entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to repeal certain requirements in order to qualify for an award of a health and human services contract.

 

     Specifically, the measure repeals:

 

     (1)  The requirement that all applicants for procurement contracts for health and human services possess all licenses necessary to conduct the subject business; and

 

     (2)  The requirement that all contracts for health and human services include only costs, fees, and taxes reflected on the face of the proposal.

 

     Your Committee received written comments in support of this measure from the Department of Human Services and the Department of Health.

 

     Your Committee finds that the requirement that potential contractors obtain licensure prior to being awarded a state contract for health or human services has served as a significant barrier to new providers entering the service system, as providers typically will not obtain licensure prior to being awarded a contract.  Your Committee further finds that the Hawaii Administrative Rules already require applicants to obtain necessary licenses prior to the start of contract services, and therefore the requirements being repealed by this measure are not necessary.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 149 and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair