REPORT TITLE:
Federal Funding


DESCRIPTION:
Prohibits the governor and the director of finance from
restricting any state agency's ability to spend federal grant
moneys if already approved by the granting federal agency.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2106
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FEDERAL FUNDING. 


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

 1      SECTION 1.  The legislature finds that federal funds are
 
 2 returned to the federal government if they are allowed to lapse.
 
 3 One example is the return of federal funds which were earmarked
 
 4 for the renovation of federally subsidized housing.  The
 
 5 legislature further finds that the return of federal funds, in
 
 6 many instances, is a result of spending restrictions imposed on
 
 7 the expending agencies by the governor or the director of
 
 8 finance.
 
 9      The purpose of this Act is to prevent the loss of federal
 
10 funds by preventing the governor and the director of finance from
 
11 placing restrictions on the use of federal funds.
 
12      SECTION 2.  Chapter 29, Hawaii Revised Statutes, is amended
 
13 by adding a new section to be appropriately designated and to
 
14 read as follows:
 
15      "§29-    Federal grants-in-aid; governor and director of
 
16 finance not to restrict.  Notwithstanding any law to the
 
17 contrary, the governor and the director of finance shall be
 
18 prohibited from restricting any state agency's ability to expend
 
19 federal grant moneys if the granting federal agency has already
 

 
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                                     S.B. NO.           2106
                                                        
                                                        

 
 1 approved the expenditure of funds as provided in the state
 
 2 agency's grant application.  Any modification of the amounts
 
 3 expended by the state agency of federally granted funds shall be
 
 4 agreed to by the granting federal agency and the state agency
 
 5 authorized under the grant to expend the funds and shall not
 
 6 require the governor's or the director of finance's approval."
 
 7      SECTION 3.  New statutory material is underscored.
 
 8      SECTION 4.  This Act shall take effect upon its approval and
 
 9 shall apply retroactively to federal funds available to state 
 
10 agencies during the 1999-2000 fiscal year.
 
11 
 
12                       INTRODUCED BY:  ___________________________