Purchases of Service

Requires the governor to convene a task force to establish
criteria with which to evaluate and rank all purchases of
service.  Requires all state departments and their attached
agencies to evaluate and rank purchases of service according to
the established criteria.  Requires report to the legislature.

HOUSE OF REPRESENTATIVES                H.B. NO.534        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that there is a need to
 2 establish criteria with which to evaluate and rank all purchases
 3 of service.
 4      In 1997, the legislature enacted Act 190 to improve the
 5 process used to expend state funds for grants, subsidies, and
 6 purchases of services, particularly the process used to purchase
 7 health and human services from organizations and individuals in
 8 the community available and qualified to act on behalf of the
 9 State in responding to the health and human service needs of its
10 citizens.
11      That Act separated the processes used by state agencies to
12 expend appropriations of state funds for grants and subsidies
13 from that of paying for and providing purchases of services on
14 the agencies' behalf.  The legislature's intent was that all
15 state agencies use the same single process to obtain and pay for
16 health and human services to ensure the fair and equitable
17 treatment of all persons who apply to, and are paid to provide
18 those services on the agencies' behalf.
19      Although the legislature finds that Act 190 resulted in a

Page 2                                                     
                                     H.B. NO.534        

 1 simpler, standardized process for the use of state agencies and
 2 providers and has improved information-sharing, planning, and
 3 service delivery efforts, the legislature nevertheless finds that
 4 tough economic times and fiscal realities mandate the need to
 5 prioritize the awarding of these purchase of service contracts.
 6      In particular, there is a need to establish criteria with
 7 which to evaluate and rank all purchases of service in order to
 8 determine which contracts need to be reduced first.  The
 9 legislature finds, for example, that different state departments
10 may have different priorities, which may not coincide with the
11 priorities of another department.  There is a need to establish a
12 statewide set of criteria that apply to all purchases of
13 services.  Once the criteria are in place, all state departments
14 and their attached agencies could then evaluate and rank their
15 respective purchases of services according to those criteria.
16      Accordingly, the purpose of this Act is to establish a task
17 force within the office of the governor to develop criteria by
18 which to rank all purchases of services, and to require all
19 departments to evaluate and rank their purchases of services
20 according to those criteria.
21      SECTION 2.  Purchases of services; governor's task force;
22 criteria; evaluation; ranking.(a)  There is established within
23 the office of the governor a task force to establish criteria by

Page 3                                                     
                                     H.B. NO.534        

 1 which all state departments and their attached agencies shall
 2 rank all purchases of services that are issued by those
 3 departments or agencies.
 4      (b)  The task force shall consist of the lieutenant governor
 5 and ten members appointed by the governor from lists of nominees
 6 submitted by the director of health, the director of human
 7 services, the superintendent of education, the president of the
 8 University of Hawaii, the director of labor and industrial
 9 relations, the attorney general, the director of public safety,
10 and the chief justice.  Each list shall contain at least one
11 nominee from the islands of Kauai, Oahu, Maui, Molokai, Lanai,
12 and Hawaii, three of whom shall be from private agencies and
13 three of whom shall be from government agencies other than the
14 agency making the nominations.  In appointing the membership of
15 the task force, the governor shall ensure that each island listed
16 in this section is represented on the task force, and that the
17 gender and ethnic composition of the task force reflects--as
18 nearly as possible--the gender and ethnic composition of the
19 State.  Not less than three members of the task force shall be
20 from private agencies.  The task force shall be chaired by the
21 lieutenant governor.
22      (c)  In carrying out its duties under this section, the task
23 force may request staff assistance from the department of budget

Page 4                                                     
                                     H.B. NO.534        

 1 and finance and other appropriate executive agencies, and may
 2 consult with the community council established in section
 3 103F-202, Hawaii Revised Statutes, regarding the establishment of
 4 criteria.
 5      (d)  The members of the task force shall serve without
 6 compensation, but shall be reimbursed for expenses, including
 7 travel expenses, necessary for the performance of their duties.
 8      (e)  The task force shall distribute copies of the criteria
 9 established pursuant to subsection (a) to all state executive
10 departments and their attached agencies that issue purchases of
11 services.  Upon receiving the criteria, those state departments
12 and their attached agencies shall:
13      (1)  Evaluate each of the purchases of services issued by
14           that department or attached agency that will require
15           funding for the upcoming fiscal year, whether those
16           purchases of services are for the continuation of
17           funding from previous years or are new purchases of
18           services, and rank them according to the criteria;
19      (2)  Submit a report of the evaluation and ranking performed
20           under paragraph (1) to the task force by September 1,
21           2000.
22      SECTION 3.  Report.  The task force established in section 2
23 of this Act shall report to the legislature no later than twenty

Page 5                                                     
                                     H.B. NO.534        

 1 days before the convening of the regular session of 2001
 2 regarding the criteria established to rank purchases of services
 3 and the ranking of purchases of services according to those
 4 criteria by state departments and their attached agencies,
 5 including any findings and recommendations regarding those
 6 criteria and rankings.
 7      SECTION 4.  This Act shall take effect upon its approval and
 8 shall be repealed on January 31, 2002.
10                              INTRODUCED BY:______________________