Bill Text: HI SB777 | 2012 | Regular Session | Amended

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Bill Title: Public Money; Payment for Goods and Services; Task Force

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Engrossed - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB777 Detail]

Download: Hawaii-2012-SB777-Amended.html

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STAND. COM. REP. NO.  1148

 

Honolulu, Hawaii

                , 2011

 

RE:   S.B. No. 777

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization & Business, to which was referred S.B. No. 777, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PAYMENT FOR GOODS AND SERVICES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to establish a prompt payment task force to examine and resolve issues relating to state agencies' payments for goods and services purchased through nonprofit organizations.

 

     Your Committee received testimony in support of this measure from the Department of Education; Goodwill Industries of Hawaii, Inc.; and the Hawaii Alliance of Nonprofit Organizations.

 

     Your Committee finds that payment delays have contributed to creating undesirable consequences for nonprofit organizations, such as having to freeze or reduce employee salaries, draw on reserves, reduce their workforce, reduce benefits, borrow funds or reduce lines of credit, and downsize programs.  In 2009, fifty per cent of the nonprofits in Hawaii reported problems with late payments, which is higher than the national average of forty-one per cent.

 

     Your Committee has amended this measure by adding a representative of the nonprofit organization Protecting Hawaii's Ohana, Children, Underserved, Elderly, and Disabled (PHOCUSED), to the task force and by changing the effective date to July 1, 2112, in order to facilitate continued discussion on the measure.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 777, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 777, S.D. 1, H.D. 1, and be referred to the Committee on Legislative Management.

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

 

 

		____________________________ ANGUS L.K. McKELVEY, Chair