THE SENATE

S.B. NO.

1227

THIRTY-THIRD LEGISLATURE, 2025

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to PROCUREMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the department of health, department of human services, and judiciary fulfill some of their statutory mandates and support access to justice by the State's residents through contracts with community-based organizations.  Many community-based organizations provide services to the State's vulnerable populations, including victims of domestic violence, at-risk youth and youth in foster care, low-income households, the elderly, and homeless individuals and families.  Community-based organizations play a critical role in strengthening families and communities in the State through the provision of essential services, including support for access to justice.

     The legislature finds, however, that while the cost incurred by community-based organizations to provide their services, including wages, utility expenses, and administrative costs, have increased significantly during the past decade, government contract rates have remained the same.  Consequently, a recent survey revealed that ninety-one per cent of community-based organizations in the State were resourced below the full operating costs required to provide the contracted services.  Community-based organizations have been struggling to fill the gap between funding levels and demand for services, and some have publicly stated that they may be forced to eliminate or reduce the services they provide.

     Accordingly, the purpose of this Act is to ensure the continued delivery of essential services by community-based organization to the State's vulnerable populations by:

     (1)  Requiring contracts for services awarded to community-based organizations by the department of health, department of human services, or judiciary in support of fulfilling their statutory mandates to individuals, families, and communities in the State to include certain protections against inflation; and

     (2)  Appropriating funds to the department of health, department of human services, and judiciary to increase the contract price in existing contracts for services provided by community-based organizations in support of fulfilling their statutory mandates to individuals, families, and communities in the State.

     SECTION 2.  Beginning January 1, 2026, contracts awarded to community-based organizations by the department of health, department of human services, or judiciary for services in support of fulfilling their statutory mandates to individuals, families, and communities in the State, including supporting access to justice, shall:

     (1)  Be for a term of multiple years; and

     (2)  Include a provision that requires the contract price to be adjusted on an annual basis based on increases in the Consumer Price Index for All Urban Consumers, or a successor index, as reported by the United States Bureau of Labor Statistics.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling the department of health's statutory mandate toward individuals, families, and communities.

     The sumsappropriated shall be expended by the department of health for the purposes of this Act.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling of the department of human services' statutory mandate toward individuals, families, and communities.

     The sumsappropriated shall be expended by the department of human services for the purposes of this Act.

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to increase the contract price under existing contracts for services provided by community-based organizations in support of fulfilling the judiciary's statutory mandate toward individuals, families, and communities.

     The sumsappropriated shall be expended by the judiciary for the purposes of this Act.

     SECTION 6.  This Act shall take effect on July 1, 2025.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

Report Title:

DOH; DHS; Judiciary; Community-Based Organizations; Contract for Services; Access to Justice; Appropriations

 

Description:

Beginning 1/1/2026, requires contracts for services awarded to community-based organizations by the Department of Health, Department of Human Services, or Judiciary in support of fulfilling their statutory mandates to individuals, families, and communities in the State to include certain protections against inflation.  Appropriates funds to the Department of Health, Department of Human Services, and Judiciary to increase the contract price in existing contracts for certain services provided by community-based organizations in support of fulfilling their statutory mandates to individuals, families, and communities in the State.

 

 

 

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