REPORT TITLE:
Education

DESCRIPTION:
Authorizes the DOE to retain and expend a portion of all indirect
overhead reimbursements for discretionary grants.  Establish a
federal grants search and application special fund.  Provides the
DOE with autonomy over the administration of its trust funds.


 
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                                                        2835
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



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

 1      SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is
 
 2 amended by adding three new sections to be appropriately
 
 3 designated and to read as follows:
 
 4      "§302A-     Federal indirect overhead reimbursements.  (a)
 
 5 The department may retain and expend federal indirect overhead
 
 6 reimbursements for discretionary grants in excess of the
 
 7 negotiated rate for such reimbursements as determined by the
 
 8 director of finance and the superintendent.
 
 9      (b)  The department shall prepare an annual report as
 
10 prescribed by the director of finance on the amount of indirect
 
11 overhead moneys retained and expended and submit the report to
 
12 the legislature twenty days before the convening of each regular
 
13 session.  The annual report shall include a breakdown of all
 
14 operating expenses.
 
15      §302A-     Federal grants search and application special
 
16 fund.  (a)  There is established a federal grants search and
 
17 application special fund into which shall be deposited the
 
18 department's share of federal indirect overhead reimbursements,
 
19 pursuant to section 302A-  .  Unless otherwise provided by law,
 

 
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 1 all other receipts shall immediately be deposited to the credit
 
 2 of the general fund of the State.  The department may to expend
 
 3 funds in the federal grants search and application special fund
 
 4 to search for discretionary grants and to develop program
 
 5 applications to secure additional revenues for the department.
 
 6 Moneys in the special fund may be expended for consultant
 
 7 services and operational expenses, including the creation and
 
 8 hiring of temporary staff.
 
 9      (b)  The department shall prepare and submit an annual
 
10 report on the status of the federal grants search and application
 
11 special fund to the legislature twenty days prior to the
 
12 convening of each regular session.  The annual report shall
 
13 include but not be limited to a list of the grant applications to
 
14 the federal agencies and the grant awards received.
 
15      §302A-     Appropriations for trust funds of the department
 
16 of education.  Notwithstanding any other law to the contrary, in
 
17 any fiscal year, if the amount of revenues deposited into a trust
 
18 fund of the department of education exceeds the amount
 
19 appropriated from that fund for that year, the superintendent may
 
20 approve expenditures in excess of the amount appropriated, up to
 
21 the amount by which revenues for that fund exceed the
 
22 appropriations from that fund for a fiscal year; provided that
 
23 the department shall submit annually a report to the governor and
 

 
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 1 the legislature of all expenditures in excess of each fund's
 
 2 appropriation for each fiscal year."
 
 3      SECTION 2.  There is appropriated out of the federal grants
 
 4 search and application special fund the sum of $_______, or so
 
 5 much thereof as may be necessary for fiscal year 2000-2001, to
 
 6 the department of education to carry out the purposes of this
 
 7 Act, including the creation and hiring of necessary staff.  The
 
 8 sum appropriated shall be expended by the department of
 
 9 education.
 
10      SECTION 3.  New statutory material is underscored.
 
11      SECTION 4.  This Act shall take effect June 30, 2000;
 
12 provided that section 2 shall take effect on July 1, 2000.
 
13 
 
14                           INTRODUCED BY: ________________________
 

 
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