STAND. COM. REP. NO. 2699

Honolulu, Hawaii

RE: S.B. No. 2442

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2442, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to ensure the continuity of services for the most vulnerable individuals and families involved in the justice system.

Specifically, this measure:

(1) Beginning January 1, 2027, requires certain contracts awarded to community-based organizations by the Judiciary to be:

(A) For a term of multiple years; and

(B) Adjusted annually for inflation; and

(2) Appropriates moneys to the Judiciary to increase contract prices under certain existing contracts for services provided by community-based organizations.

Your Committee received written comments in support of this measure from Parents and Children Together; Hawaii Substance Abuse Coalition; Hina Mauka; Child and Family Service; Hawai`i Children's Action Network Speaks!; Ku`ikahi Mediation Center; Catholic Charities Hawai`i; Aloha United Way; Domestic Violence Action Center; Hawaii Alliance of Nonprofit Organizations; Hawaii Youth Services Network; Hale Kipa, Inc.; Coalition for a Drug-Free Hawaii; Partners in Development Foundation; True Cost Coalition; Maui Behavioral Health Resources; and two individuals.

Your Committee received written comments on this measure from the Judiciary.

Your Committee finds that community-based organizations provide essential services for victims of domestic violence, court-involved youth, individuals navigating civil legal processes, and other vulnerable populations. Your Committee further finds that, while costs incurred by these community-based organizations have increased significantly during the past decade, government contract rates have remained stagnant. Accordingly, the moneys appropriated and contractual protections offered by this measure will help ensure the continued delivery of essential services.

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. 2442, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

DONOVAN M. DELA CRUZ, Chair