Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 708 entitled:

begs leave to report as follows:

The purpose of this measure is to create a federal reimbursement maximization special fund (fund).

Your Committee recognizes that federal grants typically require that the State have a dedicated source of state funding for a matching grant. Your Committee finds that the Department of Public Safety has had difficulty meeting state match and reporting requirements for federal grants. Your Committee finds that the creation of a special fund will serve as a revenue enhancement measure to bring in more federal grants to the Department of Public Safety and facilitate compliance with regular financial and program reports required by federal grants.

Your Committee notes that the fund created in this bill is intended to hold all federal reimbursements received by the Department of Public Safety relating to the State Criminal Alien Assistance Program, which is a federal program that provides funds to the states to prosecute illegal aliens violating state laws. The Department of Public Safety will use moneys in the fund to meet the state match requirement for federal grants and costs associated with federal grant reporting requirements. Your Committee notes that the Department of Public Safety is required to render an annual report on the status of the fund to the legislature before the convening of each regular legislative session. The bill also contains an appropriation for the Department of Public Safety to carry out these functions.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 708 and recommends that it pass Third Reading.