THE SENATE

S.C.R. NO.

40

TWENTY-SIXTH LEGISLATURE, 2012

S.D. 1

STATE OF HAWAII

H.D. 1

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING THE RENAMING OF AND THE EXTENSION OF THE PROMPT PAYMENT TASK FORCE TO DEVELOP RECOMMENDATIONS TO ADDRESS ISSUES THAT AFFECT PROCUREMENT FOR GOODS AND SERVICES PURCHASED THROUGH NONPROFIT ORGANIZATIONS, INCLUDING HUMAN SERVICE NONPROFIT ORGANIZATIONS THAT DELIVER PIVOTAL GOODS AND SERVICES TO INDIVIDUALS, FAMILIES, COMMUNITIES, AND OTHER SMALL BUSINESSES.

 

 


WHEREAS, nationally, state and local governments contract with nonprofit organizations particularly human service organizations to deliver pivotal services to individuals, families, and communities; and

 

WHEREAS, 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; and

 

WHEREAS, key problems included payments not covering full program costs, complex and time-consuming applications and reporting, changes to contractual and grant agreements, and late payments; and

 

WHEREAS, 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; and

 

WHEREAS, small businesses that contract with governments report the same concerns and face the same negative consequences, and both nonprofits and businesses struggle to make ends meet in an economy that has faltered; and

 

WHEREAS, upon adoption of Senate Concurrent Resolution No. 28, S.D. 2, in 2011, the Comptroller established a prompt payment task force and invited as initial members of the task force, 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) The Senate Committee on Economic Development and Technology;

 

(8) The Senate Committee on Human Services;

 

(9) The Senate Committee on Public Safety, Government Operations, and Military Affairs;

 

(10) The House of Representatives Committee on Economic Revitalization and Business;

 

(11) The House of Representatives Committee on Human Services; and

 

(12) The House of Representatives Committee on Public Safety and Military Affairs; and

 

WHEREAS, the prompt payment task force has held at least three meetings since August 2011, and the chairs of the Senate Committee on Economic Development and Technology and the House of Representatives Committee on Economic Revitalization and Business assumed responsibility for co-chairing the task force after the Comptroller's transition to the Office of the Governor in September 2011; and

 

WHEREAS, while the prompt payment task force has identified a number of areas of concern, the members have determined that further work by the task force is necessary to complete the tasks requested in Senate Concurrent Resolution No. 28, S.D. 2; and

 

WHEREAS, in addition, recommendations of the task force will benefit from pilot projects involving the use of "dashboard" and other information technology infrastructure enhancements proposed for implementation in 2012; now, therefore,

 

BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, the House of Representatives concurring, that the prompt payment task force is requested to be renamed as the government contracting task force and extended until December 31, 2012; and

 

BE IT FURTHER RESOLVED that the State's Chief Information Officer, a representative of the Department of Accounting and General Services contracting services, and a representative of The Chamber of Commerce of Hawaii be invited to serve as members of the task force; and

 

BE IT FURTHER RESOLVED that the government contracting task force is requested to develop recommendations to address issues that affect procurement for goods and services purchased through nonprofit organizations, including human service nonprofit organizations that deliver pivotal goods and services to individuals, families, communities, and other small businesses; and

 

BE IT FURTHER RESOLVED that in developing these recommendations, the government contracting task force is requested to:

 

(1) Examine state contracting from the initial planning phase through service delivery, and issues relating to payment when invoices are submitted;

 

(2) Identify areas that can be simplified and standardized between government agencies, the State Procurement Office, the Department of Accounting and General Services, the Department of the Attorney General, and the parties contracted to deliver services; and

 

(3) Develop the scope of a "dashboard" demonstration project that utilizes designated contract areas in the Department of Health, Department of Human Services, and Department of Public Safety to test business process improvements or other approaches to streamline the contracting process, with the goal of clarifying problem areas and solutions for government agencies and the parties contracted to provide services; and

 

BE IT FURTHER RESOLVED that the government contracting task force is requested to submit a report of its findings and recommendations to the Legislature no later than December 31, 2012; and

 

BE IT FURTHER RESOLVED that the government contracting task force, upon the request of the Legislature, participate in a joint informational briefing to discuss its report; and

 

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chief of Staff, Office of the Governor; the Chief Information Officer; the Attorney General; the Comptroller; the Administrator of the State Procurement Office, Department of Accounting and General Services; the Director of Finance; the Director of Health; the Director of Human Services; the Chair of the Board of Directors of the Hawaii Alliance of Nonprofit Organizations; the President of the Building Industry Association of Hawaii; the Executive Director of The Pacific Resource Partnership; the President of The Chamber of Commerce of Hawaii; the Chair of the Senate Committee on Economic Development and Technology; the Chair of the Senate Committee on Human Services; the Chair of the Senate Committee on Public Safety, Government Operations, and Military Affairs; the Chair of the House of Representatives Committee on Economic Revitalization and Business; the Chair of the House of Representatives Committee on Human Services; and the Chair of the House of Representatives Committee on Public Safety and Military Affairs.

Report Title:

Prompt Payment Task Force; Extended to June 30, 2012