HB2088.DOC

SECTION 1. The legislature passed Act 150, Session Laws of Hawaii 2009, to create expedited procedures for expending federal funds drawn down by the State from the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5. The objective was to take full advantage of these funds to address the programs, services, and benefits needed by the people of Hawaii.

Act 150, Session Laws of Hawaii 2009, also established a commission to monitor federal stimulus funds drawn down by the State. While this is an important function, the legislature finds that the commission can do more to ensure that Hawaii draws down its fair share of stimulus funding.

The purpose of this Act is to expand the responsibilities of the legislative federal economic stimulus program oversight commission by authorizing the commission to:

(1) Determine the total amount of stimulus funds for which the State qualifies;

(2) Determine the amounts for which the State has applied, as well as the amounts that the State has drawn down, the distribution, and uses; and

(3) Provide greater transparency by making information about the funds easily available to the public.

SECTION 2. Act 150, Session Laws of Hawaii 2009, is amended by amending part II to read as follows:

"PART II

SECTION 6. (a) There is established a legislative federal economic stimulus program oversight commission, to be comprised of eleven members, as follows:

(1) Six voting members:

(A) One member of the senate, to be appointed by the president of the senate;

(B) One member of the house of representatives to be appointed by the speaker of the house of representatives; and

(C) Four members of the public, representing citizens and local government, one each to be appointed by the president of the senate, speaker of the house of representatives, senate minority leader, and house of representatives minority leader; and

(2) Five non-voting members, one each appointed by:

(A) Each member of Hawaii's congressional delegation; and

(B) The governor.

The voting members of the commission shall elect the chairperson of the commission.

(b) Legislative staff offices as determined by the president of the senate and the speaker of the house of representatives shall provide administrative assistance to the commission.

(c) In providing oversight of the distribution of any federal economic stimulus program funds and the implementation of program expenditures, the commission shall determine:

(1) All federal economic stimulus program funds for which the State of Hawaii qualifies;

(2) The funds for which the State of Hawaii has applied;

(3) The funds that have been drawn down by the State of Hawaii;

(4) The distribution of funds that have been drawn down; and

(5) The uses for which the distributed funds have been expended as compared with the intended uses of the funds.

[~~(c)~~] (d) In providing oversight of the distribution of any federal economic stimulus program funds and the implementation of program expenditures, the commission may:

(1) Evaluate the coordination of federal stimulus funded programs within the State;

(2) Determine if criteria developed for setting priorities are being followed;

(3) Determine the adequacy of public notice and opportunity for public comment and input;

(4) Evaluate the transparency of the bidding and the contracting process;

(5) Evaluate the integrity of the distribution and expenditure of federal stimulus funded programs;

(6) Determine the extent to which duplication and waste is prevented; and

(7) Undertake any other tasks or efforts to ensure the integrity and fairness of the distribution and expenditure of all funds and implementation of all programs.

[~~(d)~~] (e) Executive branch agencies shall provide information on the receipt and expenditure of federal economic stimulus program funds upon request of the commission.

[~~(e)~~] (f) The commission may request specific audit services from the state auditor.

(g) The commission shall make information about the stimulus funds easily available to the public, such as through a website. The information shall include stimulus funds for which the State qualifies, funds for which the State has applied, funds that have been drawn down, funds that have been distributed, and the use of the funds compared with their intended purposes.

[~~(f)~~] (h) For the purposes of this section, "commission" means the legislative federal economic stimulus program oversight commission."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2088
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII