STAND. COM. REP. NO.  269

 

Honolulu, Hawaii

                , 2017

 

RE:   H.B. No. 556

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committees on Human Services and Health, to which was referred H.B. No. 556 entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

beg leave to report as follows:

 

     The purpose of this measure is to amend Section 103F-401.5, Hawaii Revised Statutes (HRS), to:

 

(1)  Require applicants who submit contract proposals to operate a child care program to have the necessary business licenses; and

 

(2)  Exempt applicants who submit proposals to operate a child care program or group living facility from having to obtain licenses to operate under Section 346-161, HRS, and Chapter 321, HRS, prior to their proposal being accepted.

 

     The Department of Human Services testified in support of this measure.  The Department of Health (DOH) and State Procurement Office commented on this measure.

 

     DOH testified that the requirement under Section 103F-401.5, HRS, that applicants obtain licensure prior to being awarded a state contract has served as a barrier to new service providers entering the system.  Your Committees also note that the State Procurement Office testified that Section 103F-401.5, HRS, restricts competition among qualified health and human service providers.

 

     Upon careful consideration, your Committees have amended this measure by deleting its contents and inserting the contents contained in H.B. No. 557 (2016), Relating to Procurement, the purpose of which is to repeal Section 103F-401.5, HRS.

 

     Your Committees also amended this measure by changing its effective date to July 1, 2075, to facilitate further discussion.

 

     As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 556, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 556, H.D. 1, and be referred to your Committee on Finance.

 

 

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

 

 

____________________________

DELLA AU BELATTI, Chair

 

____________________________

DEE MORIKAWA, Chair