67th Legislature SJ 35.1
1 SENATE JOINT RESOLUTION NO. 35
2 INTRODUCED BY C. FRIEDEL, M. BLASDEL, E. BUTTREY, G. FRAZER, S. GALLOWAY, M.
3 STROMSWOLD, B. TSCHIDA, S. VINTON
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5 A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF
6 MONTANA REQUESTING AN INTERIM STUDY OF PROCUREMENT PRACTICES BY THE DEPARTMENT
7 OF PUBLIC HEALTH AND HUMAN SERVICES; AND REQUIRING THAT THE RESULTS OF THE STUDY BE
8 REPORTED TO THE 68TH LEGISLATURE.
9
10 WHEREAS, the Montana Procurement Act has several beneficial purposes, including ensuring fair and
11 equitable treatment of all persons who deal with the procurement system in the State of Montana, providing
12 increased economy in state procurement activities, maximizing the purchasing value of public funds, and
13 providing for increased public confidence in the procedures followed by the state in procuring services; and
14 WHEREAS, the Montana Department of Public Health and Human Services frequently deviates from
15 and does not follow the Montana Procurement Act in procuring services from vendors; and
16 WHEREAS, the last two financial compliance audits conducted on the Department of Public Health and
17 Human Services by the Legislative Auditor's Office found that the agency failed to follow the Montana
18 Procurement Act during the 2017 and 2019 bienniums; and
19 WHEREAS, the audits found that the Department of Public Health and Human Services regularly failed
20 to enter into contracts for chemical dependency evaluations, support services, one-on-one youth supervision,
21 and urinary analyses for youth in the foster care program; and
22 WHEREAS, the Department of Public Health and Human Services has attempted to justify its
23 procurement practices with several different explanations, including that the act interferes with federal
24 procurement policies and constrains the Department of Public Health and Human Services from finding vendors
25 in emergency situations; and
26 WHEREAS, the audits found that some vendors who were not required to follow the Montana
27 Procurement Act received more than $500,000 from the Department of Public Health and Human Services,
28 including one vendor who received nearly $900,000.
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67th Legislature SJ 35.1
1
2 NOW, THEREFORE, BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES OF
3 THE STATE OF MONTANA:
4 That the Legislative Council be requested to designate an appropriate interim committee or statutory
5 committee, pursuant to section 5-5-217, MCA, to study the procurement practices of the Department of Public
6 Health and Human Services.
7 BE IT FURTHER RESOLVED, that the study:
8 (1) identify the circumstances under which the Department of Public Health and Human Services
9 deviates from the Montana Procurement Act and how frequently those circumstances occur;
10 (2) identify the policies and procedures that the agency uses when determining whether it must follow
11 the standard procurement practices or how it otherwise determines whether to seek bids or proposals for
12 services;
13 (3) review the statutes and administrative rules related to state agency procurement, including the
14 federal laws and regulations governing public assistance programs, the procurement procedures for federally
15 funded programs administered by the Department of Public Health and Human Services, and the state statutes
16 and administrative rules specific to the provision of human services;
17 (4) determine whether practical obstacles, including the emergency needs of clients served by the
18 agency, affect the department's procurement procedures; and
19 (5) obtain an accounting of the amount of money the department has paid to vendors who were
20 selected outside of the standard procurement process.
21 BE IT FURTHER RESOLVED, that the study include input from appropriate stakeholders.
22 BE IT FURTHER RESOLVED, that all aspects of the study, including presentation and review
23 requirements, be concluded prior to September 15, 2022.
24 BE IT FURTHER RESOLVED, that the final results of the study, including any findings, conclusions,
25 comments, or recommendations of the appropriate committee, be reported to the 68th Legislature.
26 - END -
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