Bill > SB1227

This bill addresses challenges faced by community-based organizations (CBOs) that provide essential services to vulnerable populations in Hawaii by implementing two key mechanisms: First, beginning January 1, 2026, contracts between the Department of Health, Department of Human Services, and Judiciary and CBOs will be required to have multi-year terms and include an annual contract price adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U), which will help these organizations keep pace with rising operational costs. The legislation stems from a survey revealing that 91% of CBOs were operating below their full cost requirements, which has threatened their ability to maintain critical services for groups like domestic violence victims, at-risk youth, low-income households, elderly, and homeless individuals. To support this initiative, the bill appropriates funds from the state's general revenues for fiscal years 2025-2026 and 2026-2027 to each of the three mentioned departments, allowing them to increase contract prices for existing CBO service contracts. By providing these inflation protections and financial adjustments, the bill aims to ensure the continued delivery of essential social services and support for Hawaii's most vulnerable populations.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1227&year=2026