Bill Text: HI HR49 | 2018 | Regular Session | Amended
Bill Title: Requesting A Study On Indirect Cost Provisions And Timeliness Of State Of Hawaii Payments Under Department Of Health, Department Of Human Services And Department Of Public Safety Contracts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-03-28 - Report adopted. referred to the committee(s) on FIN as amended in HD 1 with none voting aye with reservations; none voting no (0) and Representative(s) Souki excused (1). [HR49 Detail]
Download: Hawaii-2018-HR49-Amended.html
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HOUSE OF REPRESENTATIVES |
H.R. NO. |
49 |
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TWENTY-NINTH LEGISLATURE, 2018 |
H.D. 1 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
REQUESTING A STUDY ON INDIRECT COST PROVISIONS AND TIMELINESS OF STATE OF HAWAII PAYMENTS UNDER DEPARTMENT OF HEALTH, DEPARTMENT OF HUMAN SERVICES AND DEPARTMENT OF PUBLIC SAFETY CONTRACTS.
WHEREAS, a recent national study noted that half of nonprofit service providers working under government contracts and grants reported that the government limited reimbursements to nonprofits or excluded nonprofits from administrative and overhead cost reimbursements; and
WHEREAS, roughly 20 to 25 percent of the study respondents said the government paid no administrative expenses, while nearly 75 percent said the government limited reimbursements to 10 percent or less; and
WHEREAS, the majority of nonprofits in thirty-four states said government contracts and grants limited reimbursement for overhead costs, and a majority of nonprofits in twenty-seven states reported limits on administration expenses; and
WHEREAS, nonprofits are still suffering financially from the 2008 recession and are additionally burdened by late payments from the government; and
WHEREAS, according to a more recent national report, 68 percent of human service nonprofits reported concerns with the government not paying the full cost of services and about 75 percent of respondents reported that the complexity and time required for applying and reporting on contracts was a problem; and
WHEREAS, as a result of the recession, many Hawaii nonprofits have faced reduced revenues from individuals, foundations, corporations, investments, and government sources, but have experienced an increased demand for services that has caused financial pressure on nonprofits and forced them to freeze or reduce employee salaries, draw on reserves, cut back on the number of employees, borrow funds, or reduce the hours of operations; and
WHEREAS, while the State Legislature in 2011 created a Prompt Payment Task Force to look into the recurring problem of late government payments to nonprofits and in 2012 expanded the scope of the initial task force to address the broad array of problems in the government contracting system, stakeholders said this action did not result in the implementation of meaningful recommendations or change; and
WHEREAS, it is in the best interest of the State to promote the effective and efficient delivery of health and human services by nonprofit service providers through the procurement of services under chapter 103F, Hawaii Revised Statutes; now, therefore,
BE IT RESOLVED
by the House of Representatives of the Twenty-ninth Legislature of the State of
Hawaii, Regular Session of 2018, that the Auditor is requested to conduct a
review of the Department of Health, Department of Human Services, and
Department of Public Safety contracts awarded to non-profit service providers
under chapter 103F, Hawaii Revised Statutes, from 2015 to 2017 to determine the
extent to which overhead and indirect costs were contractually limited or
restricted; and
BE IT FURTHER RESOLVED that the State Procurement Office Administrator is requested to:
(1) Establish a chapter 103F working group which shall meet at least twice before the start of the 2019 Legislature to assess and, if necessary, recommend proposals to address adequate reimbursement for overhead and indirect costs in Department of Health, Department of Human Services and Department of Public Safety contracts under chapter 103F, Hawaii Revised Statutes; and
(2) To invite up to five initial members of the working group, including at least one member from the Department of Health, Department of Human Services, Department of Public Safety, and PHOCUSED or another representative of Hawaii's non-profit service provider sector; and
(3) Submit a report summarizing the discussion and recommendations, if any, of the working group to the Legislature no later than twenty days prior to the convening of the regular session of 2019.
BE IT FURTHER RESOLVED that the State Procurement Office Administrator and Auditor are requested to submit reports of findings and recommendations, including any proposed legislation, to the Legislature no later than 20 days prior to the convening of the Regular Session of 2019; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Auditor, State Procurement Office Administrator, and the Director of the Office of Information Practices.
Government Contracts; Payment Timeliness; Reimbursement; Overhead; Administrative Costs; Study
