STAND. COM. REP. NO. 1409

Honolulu, Hawaii

RE: H.B. No. 978

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Government Operations and Health and Human Services, to which was referred H.B. No. 978, H.D. 2, 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:

(1) Authorize heads of purchasing agencies to issue requests for statements of qualification and to establish lists of qualified providers for treatment purchase of services; and

(2) Increase the small purchase threshold for health and human services.

Your Committees received testimony in support of this measure from the State Procurement Office and Department of Accounting and General Services.

Your Committees find that agencies under the treatment purchase of service procurement method are unable to establish and use their own lists of qualified providers as needed, specifically for the provision of health and human services. Your Committees further find that the small purchase threshold for health and human services, established under section 103F-405, Hawaii Revised Statutes, has remained unchanged at $25,000 since the establishment of chapter 103F, Hawaii Revised Statutes, in 1997. Therefore, this measure authorizes heads of purchasing agencies to establish lists of qualified providers for treatment purchase of service procurement and provides adjustments to the small purchase threshold, which will benefit state agencies that purchase health and human services by reducing administrative costs, accelerating small purchase procedures, and freeing up scarce resources to execute complex high-dollar value procurements.

Your Committees have amended this measure by removing the independent numerical limit for the small purchases of health and human services and aligning it instead with the threshold for goods and services established in section 103D-305(a), Hawaii Revised Statutes, which is currently $100,000.

As affirmed by the records of votes of the members of your Committees on Government Operations and Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 978, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 978, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ JOY A. SAN BUENAVENTURA, Chair

________________________________ ANGUS L.K. MCKELVEY, Chair