Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1272 entitled:

begs leave to report as follows:

The purpose of this measure is to preserve the integrity of the expenditure of federal grant funds obtained by a state agency.

Specifically, this bill prohibits the Governor and the Director of Finance from restricting any state agency's ability to expend federal grant moneys if the federal granting agency has already approved expenditure of funds as provided in the state agency's grant application. Modifications of amounts expended must be agreed to by the state agency and the federal granting agency and shall not require the approval of the Governor or the Director of Finance.

Your Committee believes that federal funds should be expended by the State for their intended purposes. However, your Committee believes that modifications should require legislative authorization. Accordingly, your Committee has amended this bill by inserting language to the effect that, whenever modifications are to be made of the amounts of federal funds to be expended, legislative authorization shall be required, where permitted or required by state or federal laws, in the form of a concurrent resolution.

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. 1272, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1272, S.D. 1.