HOUSE OF REPRESENTATIVES |
H.B. NO. |
314 |
THIRTY-FIRST LEGISLATURE, 2021 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MANDATORY REPORTING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to ensure that entities
that receive funds from the department of health or department of human services
use those funds responsibly.
SECTION 2. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§103F- Annual
financial reports. (a)
Every provider shall annually file with the department to which the purchasing
agency is attached a report for its most recently completed fiscal year as follows:
(1) If the provider
files a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service, the annual
report shall be a copy of that Form 990, 990-EZ, or 990-PF; and
(2) If a provider files
a Form 990N or is not required to file a Form 990, 990-EZ, or 990-PF with the
Internal Revenue Service, the annual report shall contain all information
prescribed by the department to which the purchasing agency is attached; provided
that if the provider is required to file a Form 990-T with the Internal Revenue
Service, the provider's annual report shall also include a copy of that Form
990-T.
(b) The annual report for a provider that files a Form 990,
990-EZ, or 990-PF shall be electronically submitted to the department to which the
purchasing agency is attached within ten business days of the date that the provider
files the form with the Internal Revenue Service. No later than the fifteenth day of the fifth
month following the close of its fiscal year, the annual report for a provider
that files a Form 990-N or that is not required to file a Form 990, 990-EZ, or
990-PF shall be electronically submitted to the department to which the purchasing
agency is attached.
(c) An authorized officer or agent of the provider
shall sign the annual report and shall certify that the statements therein are
true and correct to the best of the officer's or agent's knowledge, subject to
penalties imposed by section 710‑1063.
(d) A provider that has obtained an extension of
time to file a Form 990, 990-EZ, or 990-PF from the Internal Revenue Service
shall provide a copy to the department to which the purchasing agency is attached
within twenty days after the copy is requested by that department.
(e) The department to which the purchasing agency is
attached shall accept, under conditions prescribed by that department, a copy
or duplicate original of financial statements, reports, or returns filed by the
provider with the Internal Revenue Service or another state having requirements
similar to the provisions of this section; provided that the department may
prescribe the form of the annual financial report for charitable organizations
that file the Form 990-N with the Internal Revenue Service, or that are not
required to file a Form 990, 990-EZ, or 990-PF with the Internal Revenue
Service.
(f) A provider required to obtain an audit report
by a governmental authority or a third party shall include with its annual report
an audit report, prepared by a certified public accountant in accordance with generally
accepted accounting principles.
(g) If an annual report required under this
section is not filed, taking into account any extension of time for filing,
unless the failure is shown to be due to reasonable cause, a late filing fee of
$20 shall be imposed for each day the violation continues; provided that the
total amount imposed under this subsection shall not exceed $1,000.
(h) Every provider subject to this section shall
keep true fiscal records that shall be available for inspection upon
request. The provider shall retain the
records for no less than three years after the end of the fiscal year to which the
records relate.
(i) The department to which the purchasing agency
is attached may require that any documents required by this section be electronically
submitted and include electronic signatures.
(j) All documents submitted pursuant to this section
shall be shared with the department of taxation for the purpose of ensuring compliance
with state tax requirements.
(k) The requirements of this section shall not apply to contracts with provisions required by federal law or regulation, or by conditions of a federal cooperative agreement or grant, relating to annual financial reports."
SECTION 3. This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2060.
Report Title:
Department of Human Services; Department of Health; Department of Taxation; Providers; Procurement; Annual Reports
Description:
Requires that providers of health or human services that receive state funds file annual financial reports and that the reports be disclosed to the department of taxation. Exempts certain contracts with existing reporting requirements. Effective 7/1/2060. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.