REPORT TITLE:
Federal Funding


DESCRIPTION:
Prohibits the governor, the comptroller, and the director of
finance from restricting any state agency's ability to spend
federal grant moneys if the expenditure is already approved by
the granting federal agency.  (SB2106 SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2106
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


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

 
Page 2                                                     2106
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 state agency's ability to expend federal grant moneys if the
 
 2 granting federal agency has already approved the expenditure of
 
 3 funds as provided in the state agency's grant application.  Any
 
 4 modification of the amounts expended by the state agency of
 
 5 federally granted funds shall be agreed to by the granting
 
 6 federal agency and the state agency authorized under the grant to
 
 7 expend the funds and shall not require the governor's, the
 
 8 comptroller's, or the director of finance's approval.
 
 9      (b)  If the amount of federal grant moneys received by any
 
10 state agency exceeds the authorized appropriation in the General
 
11 Appropriations Act or the Supplemental Appropriations Act, then
 
12 the governor shall:
 
13      (1)  Allow the state agency to increase the federal fund
 
14           expenditure ceiling by the amount that the federal
 
15           grant moneys received by the agency exceeds the
 
16           authorized appropriation in the General Appropriations
 
17           Act or the Supplemental Appropriations Act; and
 
18      (2)  Allow the state agency to retain the full amount of the
 
19           general fund offset created by the federal grant moneys
 
20           to further carry out the purposes of the specific
 
21           programs for which the grant moneys were awarded."
 
22      SECTION 3.  New statutory material is underscored.
 
23      SECTION 4.  This Act shall take effect upon its approval and
 

 
Page 3                                                     2106
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 shall apply retroactively to federal funds available to state
 
 2 agencies during the 1999-2000 fiscal year.