Honolulu, Hawaii

                , 2021


RE:   H.B. No. 314

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii




     Your Committee on Health, Human Services, & Homelessness, to which was referred H.B. No. 314 entitled:




begs leave to report as follows:


     The purpose of this measure is to:


     (1)  Require providers of health or human services who are contracted with the state and who witness a violation of law or rule to report the violation to the purchasing agency so that investigators may follow up and prevent further injury or other detrimental actions; and


     (2)  Require entities that receive funds from the Department of Health or Department of Human Services to provide annual financial reports to the appropriate department.


     Your Committee received testimony in opposition to this measure from the State Procurement Office.  Your Committee received comments on this measure from the Department of Health, Department of Human Services, Hawaii Primary Care Association, and The Queen's Health Systems.


     Your Committee finds that requiring annual financial reports from entities who receive funds from the Department of Health or Department of Human Services will ensure that those funds are being used responsibly and for the benefit of the State.


     Your Committee has amended this measure by:


     (1)  Removing the requirement for providers of health or human services to report any violation of rule or law while fulfilling a contract with the State;


     (2)  Exempting contracts with annual financial reporting provisions that are required by federal law or regulation, or by conditions of a federal cooperative agreement or grant, from the financial reporting requirements established by this measure;


     (3)  Changing the effective date to July 1, 2060, to encourage further discussion; and


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


     As affirmed by the record of votes of the members of your Committee on Health, Human Services, & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 314, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 314, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.



Respectfully submitted on behalf of the members of the Committee on Health, Human Services, & Homelessness,