| 47 | | - | SECTION 1. The purpose of this Act is to ensure that entities that receive funds from the department of health or department of human services use those funds responsibly. SECTION 2. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§103F- Annual financial reports. (a) Every provider shall annually file with the department to which the purchasing agency is attached a report for its most recently completed fiscal year as follows: (1) If the provider files a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service, the annual report shall be a copy of that Form 990, 990-EZ, or 990-PF; and (2) If a provider files a Form 990N or is not required to file a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service, the annual report shall contain all information prescribed by the department to which the purchasing agency is attached; provided that if the provider is required to file a Form 990-T with the Internal Revenue Service, the provider's annual report shall also include a copy of that Form 990-T. (b) The annual report for a provider that files a Form 990, 990-EZ, or 990-PF shall be electronically submitted to the department to which the purchasing agency is attached within ten business days of the date that the provider files the form with the Internal Revenue Service. No later than the fifteenth day of the fifth month following the close of its fiscal year, the annual report for a provider that files a Form 990-N or that is not required to file a Form 990, 990-EZ, or 990-PF shall be electronically submitted to the department to which the purchasing agency is attached. (c) An authorized officer or agent of the provider shall sign the annual report and shall certify that the statements therein are true and correct to the best of the officer's or agent's knowledge, subject to penalties imposed by section 710‑1063. (d) A provider that has obtained an extension of time to file a Form 990, 990-EZ, or 990-PF from the Internal Revenue Service shall provide a copy to the department to which the purchasing agency is attached within twenty days after the copy is requested by that department. (e) The department to which the purchasing agency is attached shall accept, under conditions prescribed by that department, a copy or duplicate original of financial statements, reports, or returns filed by the provider with the Internal Revenue Service or another state having requirements similar to the provisions of this section; provided that the department may prescribe the form of the annual financial report for charitable organizations that file the Form 990-N with the Internal Revenue Service, or that are not required to file a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service. (f) A provider required to obtain an audit report by a governmental authority or a third party shall include with its annual report an audit report, prepared by a certified public accountant in accordance with generally accepted accounting principles. (g) If an annual report required under this section is not filed, taking into account any extension of time for filing, unless the failure is shown to be due to reasonable cause, a late filing fee of $20 shall be imposed for each day the violation continues; provided that the total amount imposed under this subsection shall not exceed $1,000. (h) Every provider subject to this section shall keep true fiscal records that shall be available for inspection upon request. The provider shall retain the records for no less than three years after the end of the fiscal year to which the records relate. (i) The department to which the purchasing agency is attached may require that any documents required by this section be electronically submitted and include electronic signatures. (j) All documents submitted pursuant to this section shall be shared with the department of taxation for the purpose of ensuring compliance with state tax requirements. (k) The requirements of this section shall not apply to contracts with provisions required by federal law or regulation, or by conditions of a federal cooperative agreement or grant, relating to annual financial reports." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2060. |
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| 47 | + | PART I SECTION 1. The legislature finds that the organizations and individuals contracted by state agencies to provide health or human services are sometimes the only people associated with the State that have regular and direct contact with the beneficiaries of those services. This contact allows for observations of beneficiaries and at times reveals criminal acts, exploitation of public services, or even abuse. For example, a provider of services related to a housing assistance program may witness neglect or other forms of child abuse. However, that provider is under no legal obligation to report those observations. The purpose of this part is to require that if a provider of health or human services witnesses a violation of law or rule, that provider shall report the violation so that investigators may follow up and prevent further injury or other detrimental actions. By making reporting mandatory, this measure will help to ensure the protection of Hawaii's most vulnerable residents. SECTION 2. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§103F- Provider duty to report violations. (a) If any provider or employee of a provider observes the violation of any law or rule while fulfilling a contract awarded pursuant to this chapter, that provider shall report the violation to the purchasing agency within twenty-four hours. (b) Failure to report any observed violation as required by subsection (a) shall be grounds for termination of the contract, amendment of the contract to reduce the payment to the provider, or any other remedy authorized by rules adopted pursuant to section 103F-408. (c) This section shall not be construed to require any provider or employee of a provider to obtain knowledge or skills beyond that which is required to fulfill the contract." PART II SECTION 3. The purpose of this part is to ensure that entities that receive funds from the department of health or department of human service use those funds responsibly. SECTION 4. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§103F- Annual financial reports. (a) Every provider shall annually file with the department to which the purchasing agency is attached a report for its most recently completed fiscal year as follows: (1) If the provider files a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service, the annual report shall be a copy of that Form 990, 990-EZ, or 990-PF; and (2) If a provider files a Form 990N or is not required to file a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service, the annual report shall contain all information prescribed by the department to which the purchasing agency is attached; provided that, if the provider is required to file a Form 990-T with the Internal Revenue Service, the provider's annual report shall also include a copy of that Form 990-T. (b) The annual report for a provider that files a Form 990, 990-EZ, or 990-PF shall be electronically submitted to the department to which the purchasing agency is attached within ten business days of the date that the provider files the form with the Internal Revenue Service. Not later than the fifteenth day of the fifth month following the close of its fiscal year, the annual report for a provider that files a Form 990-N or that is not required to file a Form 990, 990-EZ, or 990-PF shall be electronically submitted to the department to which the purchasing agency is attached. (c) An authorized officer or agent of the provider shall sign the annual report and shall certify that the statements therein are true and correct to the best of the officer's or agent's knowledge, subject to penalties imposed by section 710‑1063. (d) A provider that has obtained an extension of time to file a Form 990, 990-EZ, or 990-PF from the Internal Revenue Service shall provide a copy to the department to which the purchasing agency is attached within twenty days after the copy is requested by that department. (e) The department to which the purchasing agency is attached shall accept, under conditions prescribed by that department, a copy or duplicate original of financial statements, reports, or returns filed by the provider with the Internal Revenue Service or another state having requirements similar to the provisions of this section; provided that the department may prescribe the form of the annual financial report for charitable organizations that file the Form 990-N with the Internal Revenue Service, or that are not required to file a Form 990, 990-EZ, or 990-PF with the Internal Revenue Service. (f) A provider required to obtain an audit report by a governmental authority or a third party shall include with its annual report an audit report, prepared by a certified public accountant in accordance with generally accepted accounting principles. (g) If an annual report required under this section is not filed, taking into account any extension of time for filing, unless the failure is shown to be due to reasonable cause, a late filing fee of $20 shall be imposed for each day the violation continues; provided that the total amount imposed under this subsection shall not exceed $1,000. (h) Every provider subject to this section shall keep true fiscal records that shall be available for inspection upon request. The provider shall retain the records for no less than three years after the end of the fiscal year to which the records relate. (i) The department to which the purchasing agency is attached may require that any documents required by this section be electronically submitted and include electronic signatures. (j) All documents submitted pursuant to this section shall be shared with the department of taxation for the purpose of ensuring compliance with state tax requirements." PART III SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 5. New statutory material is underscored. SECTION 6. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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