REPORT TITLE:
Grants and subsidies


DESCRIPTION:
Requires the State to collect the remaining balance of grants,
subsidies, CIP funds, or the acquisition of personal property,
equipment, or vehicles if the recipient can no longer or is
unwilling to continue to provide the services.  (HB1061 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1061
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO GRANTS AND SUBSIDIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 42F-104, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§42F-104[]]  Contracts for grants and subsidies.  An
 
 4 appropriation for a grant or subsidy shall be disbursed by a
 
 5 contract between the state agency designated the expending agency
 
 6 for the appropriation by the legislature, and the recipient of
 
 7 the grant or subsidy.  The funds can be used only for the public
 
 8 purpose for which the funds were appropriated by the legislature
 
 9 and shall be lapsed if the recipient is unable or unwilling to
 
10 provide the specified services.  The contract shall specify that
 
11 the expending agency may withhold the remaining balance of the
 
12 grant or subsidy, or recover the remaining balance of the grant
 
13 or subsidy, if the recipient can no longer or is unwilling to
 
14 continue to provide the services for which the grant or subsidy
 
15 was appropriated.
 
16      In the case of capital improvement projects, or the
 
17 acquisition of personal property, equipment, or vehicles, the
 
18 recipient shall satisfy the specified public purpose at least
 
19 until the improvements, property, equipment, or vehicles have
 
20 been fully depreciated.  If the recipient can no longer or is
 

 
Page 2                                                     1061
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 unwilling to satisfy the public purpose for which the capital
 
 2 improvement project funds were appropriated, the contract shall
 
 3 specify that the State shall recover the pro rata share of the
 
 4 grant or subsidy of the depreciated value of the improvements,
 
 5 property, equipment, or vehicles.
 
 6      The expending agency is further authorized to attach and
 
 7 perfect its contractual remedies.  All recoveries shall be
 
 8 realizations of the fund from which the grant or subsidy was
 
 9 made.  The contract shall be effective as of the first day of the
 
10 fiscal year for which the funds for the grant or subsidy are
 
11 appropriated[,]; provided that up to one fourth of the total
 
12 amount appropriated may be disbursed prior to the execution of
 
13 the contract."
 
14      SECTION 2.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 3.  This Act shall take effect on July 1, 1999.