STAND. COM. REP. NO. 233-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2369

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2369 entitled:

"A BILL FOR AN ACT RELATING TO PURCHASE OF SERVICE CONTRACTS BY THE JUDICIARY,"

begs leave to report as follows:

The purpose of this measure is to support the continued delivery of essential services provided by community-based organizations in fulfillment of the Judiciary's statutory mandate to individuals, families, and communities in the State by:

(1) Beginning January 1, 2027, requiring contracts for services awarded by the Judiciary to community-based organizations to include protections against inflation; and

(2) Appropriating funds to the Judiciary to increase the contract price in existing contracts for services provided by community-based organizations.

Your Committee received testimony in support of this measure from the Office of the Public Defender; Kuʻikahi Mediation Center; Hale Kipa; The Hawaiʻi True Cost Coalition; Hawaiʻi Alliance of Nonprofit Organizations; Catholic Charities Hawaiʻi; Hawaii Substance Abuse Coalition; Parents and Children Together; Hina Mauka; Partners in Development Foundation; Child and Family Service; Coalition for a Drug-Free Hawaii; Aloha United Way; and five individuals. Your Committee received comments on this measure from the Judiciary.

Your Committee finds that the Judiciary relies on community-based organizations to provide essential services that support access to justice and assist individuals and families involved in the court system. Your Committee further finds that rising operational costs and stagnant contract rates have placed significant strain on these organizations, threatening the continuity and effectiveness of critical services statewide. Requiring inflationary adjustments in future contracts and appropriating funds to increase rates under existing contracts will help ensure the sustainability of these services and support the Judiciary's ability to fulfill its statutory mandate.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to determine the means of implementing this measure and to work with the Judiciary to determine the amount for the appropriation in its deliberations.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2369, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2369, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair