Report Title:
State Funds; Grants
Description:
Limits the governor's ability to restrict funds. Also requires notice by the Governor to recipients of grants under chapter 42F on the status of unreleased grants. (SD1)
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THE SENATE |
S.B. NO. |
1748 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to state funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§42F- Grants; release by the governor. If a grant awarded by the legislature pursuant to this chapter is not allocated or released by the governor within ninety days of the effective date of the legislation awarding the grant, the governor shall notify, in the manner prescribed in section 1-28.5, the recipient of the unreleased grant, on the status of whether the grant is still pending or will not be released. The governor shall provide the notice once every quarterly allotment period (as the periods are defined in section 37-32), beginning on the ninety-first day after the effective date of the legislation awarding the grant and until a final determination is made on the status of the grant."
SECTION 2. Section 37-35, Hawaii Revised Statutes, is amended to read as follows:
"§37-35 Estimated expenditures; approval. (a) The director of finance shall review all estimates submitted under section 37-34 and, having due regard for:
(1) The probable further needs of the department or establishment for the remainder of the term for which the appropriation was made;
(2) The terms and purposes of the appropriation, the progress of collection of revenues, and condition of the treasury; and
(3) The probable receipts and total cash requirements for the ensuing quarter,
shall approve, increase, or reduce the amount of the estimate[; provided that the].
(b) The director of finance shall not decrease a department's estimate unless the release of the estimated funds will result in a shortfall in the treasury. For estimates provided by the University of Hawaii, the director of finance shall approve the estimates submitted by the University of Hawaii when:
(1) The sum of the estimates for each funding source does not exceed the applicable allotment ceilings established by the governor under section 37-34;
(2) The progress of collection of revenues, the condition of the treasury, and the probable receipts and total cash requirements for the ensuing quarter permit; and
(3) All other legal requirements are satisfied.
The director shall act promptly upon all estimates and notify each department or establishment of its allotment, and shall notify the comptroller."
SECTION 3. Section 37-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The director of finance may modify or amend any previous allotment upon notice to the department or establishment concerned; provided that:
(1) For the University of Hawaii, the director of finance may modify or amend any previous allotment only upon application of or notice to the university[,] and upon public declaration, which shall be made ten days prior to the modification or amendment taking effect;
(2) The modification or amendment shall be made only to avoid an illegal result or [in anticipation of a] if the release of an unmodified allotment will result in an actual revenue shortfall;
(3) No deficit or undue reduction of funds to meet future needs of the department or establishment will result from the modification or amendment; and
(4) No modification or amendment shall reduce an allotment below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."
SECTION 4. Section 37-37, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as provided in subsection (b), when the director of finance determines at any time that the [probable] actual receipts from taxes or any other sources for any appropriation [will be] are less than was anticipated, and that consequently the amount available for the remainder of the term of the appropriation or for any allotment period [will be] is less than the amount estimated or allotted therefor, the director [shall], with the approval of the governor and after notice to the department or establishment concerned, shall reduce the amount allotted or to be allotted; provided that no reduction reduces any allotted amount below the amount required to meet valid obligations or commitments previously incurred against the allotted funds."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.