STAND. COM. REP. NO. 2278

Honolulu, Hawaii

RE:    S.B. No. 3070

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred S.B. No. 3070 entitled:

"A BILL FOR AN ACT RELATING TO GRANTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish legislative policies to:

     (1)  Make appropriations for grants during the Regular Session of each odd-numbered year for the ensuing fiscal biennium; provided that the Legislature may add new appropriations or amend, or repeal existing grant appropriations during the Regular Session of an even-numbered year or a Special Session;

     (2)  Appropriate funds for not more than one grant for each grant recipient during a fiscal biennium; and

     (3)  Place a low priority on requests to fund the general and administrative expenses of a grant applicant.

     Your Committee received testimony in support of this measure from Hawaii Youth Services Network.  Your Committee received testimony in opposition to this measure from the Pana‘ewa Hawaiian Home Lands Community Association.  Your Committee received comments on this measure from Hawai‘i Alliance of Nonprofit Organizations, Catholic Charities Hawai‘i, West Hawai‘i Mediation Center, and one individual.

     Your Committee finds that it is necessary to improve the grant application and approval process established under chapter 42F, Hawaii Revised Statutes, spread grant appropriations among more recipients, and fund direct services, rather than overhead costs, of grant recipients.  Implementation of this measure will increase transparency in the grant process and increase the opportunity for more applicants to receive grants.

     Your Committee has amended this measure by:

     (1)  Clarifying its purposes in section 1; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3070, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3070, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

________________________________

DONNA MERCADO KIM, Chair