Bill Text: HI SB777 | 2011 | Regular Session | Amended
Bill Title: Public Money; Payment for Goods and Services; Task Force
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Engrossed - Dead) 2011-03-24 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on LMG with none voting no (0) and Representative(s) Har, Riviere, Wooley excused (3). [SB777 Detail]
Download: Hawaii-2011-SB777-Amended.html
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THE SENATE |
S.B. NO. |
777 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO PAYMENT FOR GOODS AND SERVICES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that, nationally, state and local governments contract with nonprofit organizations – particularly human service organizations – to deliver pivotal services to individuals, families, and communities. In October 2010, the Urban Institute released three related reports, including a "National Study of Nonprofit-Government Contracting, State Profiles", which outlined a variety of problems faced by these nonprofits.
Nationally, nearly thirty-three thousand human service providers had almost two hundred thousand government contracts in 2009. Despite the prevalence and importance of government contracting, most nonprofits experienced some problem with their government contracts and grants. Key problems include payments not covering full program costs, complex and time-consuming applications and reporting, changes to contractual and grant agreements, and late payments. In Hawaii, one hundred sixty-one human service nonprofits provided services to state and county government in 2009, and fifty per cent of the nonprofits reported problems with late payments, which is substantially higher than the national average of forty-one per cent.
The legislature further finds that nonprofits are not alone in dealing with the problems outlined in the Urban Institute data. Small businesses that contract with governments report the same concerns and face the same negative consequences. Both nonprofits and businesses struggle to make ends meet in an economy that continues to falter.
In 2010, the senate committee on economic development and technology and the house of representatives committee on economic revitalization, business, and military affairs convened an informal small business discussion group to address the most critical issues facing the small business sectors within Hawaii's economy. Representatives from the Chamber of Commerce of Hawaii, construction and trades industries, community nonprofits, agricultural sector, food and restaurant industries, retailing, science and technology sector, commercial transportation industry, and interested stakeholders developed a package of bills that address the most pressing problems facing Hawaii's small business community, including the problem of late payment.
The purpose of this Act is to establish the prompt payment task force to examine and resolve issues that prevent state agencies from making prompt payments for goods and services purchased through nonprofit organizations, in particular, human service organizations, to deliver pivotal goods and services to individuals, families, and communities.
SECTION 2. (a) There is established a prompt payment task force within the department of accounting and general services for administrative purposes. The comptroller shall select the initial members of the task force and shall invite at least one member from each of the following:
(1) The state procurement office of the department of accounting and general services;
(2) The department of budget and finance;
(3) The department of health;
(4) The department of human services;
(5) The Hawaii Alliance of Nonprofit Organizations;
(6) The Building Industry Association of Hawaii or the Pacific Resource Partnership;
(7) Protecting Hawaii's Ohana, Children, Underserved, Elderly, and Disabled (PHOCUSED);
(8) The senate committee on economic development and technology;
(9) The senate committee on human services;
(10) The senate committee on public safety, government operations, and military affairs;
(11) The house of representatives committee on economic revitalization and business;
(12) The house of representatives committee on human services; and
(13) The house of representatives committee on public safety and military affairs.
The members of the prompt payment task force shall elect a chairperson from among its membership. The chairperson of the task force shall seek to maintain a balanced representation of interests and may select additional task force members at the chairperson's discretion.
(b) The prompt payment task force shall examine and resolve issues that prevent state agencies from making prompt payment for goods and services purchased through nonprofit organizations, in particular, human service nonprofit organizations, that deliver pivotal goods and services to individuals, families, and communities.
(c) Members of the prompt payment task force shall serve without compensation and shall not be reimbursed for expenses.
(d) The prompt payment task force shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2012, and shall participate in a joint informational briefing session upon request of the legislature.
(e) The department of accounting and general services shall provide administrative, clerical, and professional staff support to the task force and assist the task force in preparing its report.
(f) The prompt payment task force shall cease to exist on June 30, 2012.
SECTION 3. This Act shall take effect on July 1, 2112.
Report Title:
Public Money; Payment for Goods and Services; Task Force
Description:
Establishes a prompt payment task force attached to DAGS to examine and resolve issues relating to state agencies' payments for goods and services purchased through nonprofit organizations. Effective 07/01/2112. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
