Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 966, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish the Office of Resource Maximization (Office) within the Office of the Lieutenant Governor.

In particular, the Office is established to:

In addition, the Office is responsible for writing and coordinating applications for federal and private foundation grant moneys on behalf of state departments, state agencies, and purchase of service providers, and is required to oversee the administration of those grants to comply with federal and foundation requirements.

Your Committee finds that the federal government provides grants to states to fund various programs, including health, human services, economic development, labor training, technology, and education, and that private foundations also provide grant moneys to the State for various programs and research projects.

Your Committee further finds that grant writing and coordination is a specialized function that requires research into available federal and private foundation funding, expertise in grant writing, and coordination of the flow of various grants to the recipient.

Your Committee also finds that establishing the Office will assist the State in maximizing its ability to secure federal and private foundation moneys, thereby reducing the burden on the general fund to pay for needed public services and programs. State revenues may also be increased by proper planning and evaluation of the state budget, to ensure adequate resource allocation and prioritization of programs.

Upon further consideration, your Committee has amended this bill by amending the new section added to the Hawaii Revised Statutes by section 2 of the bill to cross reference two other sections that authorize the collection of federal grants.

In particular, your Committee finds that section 29-2(10), Hawaii Revised Statutes, requires the coordinator of the Hawaii Office of Federal Programs Coordinator in Washington, D.C., to "be authorized to accept, disburse, and allocate funds which may become available from other governmental units...". In addition, section 29-24 established the "interagency federal revenue maximization revolving fund" that requires the comptroller, by contract, to "retain the services of certified public accountants and other consultants to pursue and collect federal fund reimbursements...".

Your Committee has accordingly amended the bill to provide that the Office work in coordination with these other agencies to facilitate statewide grant seeking efforts to maximize the amount of federal funding available to the State.

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 S.B. No. 966, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 966, S.D. 2.