Honolulu, Hawaii


RE: H.B. No. 1240

H.D. 2

S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




Your Committees on Human Services and Housing, to which was referred H.B. No. 1240, H.D. 2, entitled:




beg leave to report as follows:


The purpose and intent of this measure is to appropriate funds to the Department of Human Services for the coordinated statewide homeless initiative, subject to certain conditions.


Your Committees received testimony in support of this measure from Office of the Mayor of the County of Hawaii; Hawaii Youth Services Network; The Institute for Human Services; Catholic Charities Hawaii; Aloha United Way; Hawaii Appleseed Center for Law and Economic Justice; U.S. VETS; IMUAlliance; The Salvation Army, Hawaiian and Pacific Islands Division; Gregory House Programs; and two individuals. Your Committees received comments on this measure from the Governor's Coordinator on Homelessness, Department of Human Services, Department of the Attorney General, and State Procurement Office.


Your Committees find that homelessness continues to be one of the State's most significant and challenging social problems that requires continuous resources and coordinated efforts at all levels. One such effort is the coordinated statewide homeless initiative, which provides important, cost-effective homelessness prevention and rapid rehousing services statewide and increases coordination through the statewide information and referral system on behalf of homeless individuals and those at risk of homelessness. In approximately eight months, the coordinated statewide homeless initiative provided financial assistance to 1,279 households, thereby assisting 3,992 adults and children who were homeless or at risk of becoming homeless. Although this program is only one component to address homelessness in the State, it has proven to be effective and critical in helping homeless individuals and those at risk of homelessness.


Your Committees have amended this measure by:


(1) Clarifying that the services of a master contractor procured by the Department of Human Services shall be to procure and oversee subcontracts for the provision of coordinated statewide homeless initiative services;


(2) Clarifying that the master contractor shall have the authority to modify the scope of services of any subcontract to the master contract, rather than any scope of services;


(3) Clarifying the information used by the master contractor when overseeing contracts;


(4) Allowing the master contractor to retain administrative fees of fifteen percent from the amounts paid under the master contract between the master contractor and subcontractors;


(5) Specifying that funds for the coordinated statewide homeless initiative shall be administered in conformance to accepted industry financial accounting and performance standards;


(6) Clarifying that subcontracts to the master contract, rather than all contracts, executed and using appropriations authorized pursuant to this measure shall not be subject to chapters 42F, 103D, and 103F, Hawaii Revised Statutes; and


(7) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.


As affirmed by the records of votes of the members of your Committees on Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1240, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1240, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committees on Human Services and Housing,