STAND. COM. REP. NO. 2732

Honolulu, Hawaii

RE: S.B. No. 2312

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2312, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GRANTS,"

begs leave to report as follows:

The purpose and intent of this measure is to require that grant applicants are in good standing with state and county requirements in order to receive a grant pursuant to Chapter 42F, Hawaii Revised Statutes.

Specifically, this measure adds the requirements that grants shall only be awarded to organizations that provide:

(1) A copy of the organization's bylaws or policies;

(2) A certificate of good standing from the Department of Commerce and Consumer Affairs;

(3) A current tax clearance;

(4) Proof that the organization is current on real property taxes;

(5) Proof that they have been granted tax exempt status under section 501(c)(3) of the Internal Revenue Code;

(6) Proof of registration under Hawaii's charitable solicitation statute; and

(7) Recent tax documents.

Your Committee received written comments in support of this measure from the Department of the Attorney General, Hawaii Youth Services Network, and one individual.

Your Committee finds that this measure will help to ensure that applicants for grants of public moneys are in good standing and in compliance with applicable federal and state tax laws.

Your Committee has amended this measure by making a technical nonsubstantive amendment for purposes of clarity and consistency.

As affirmed by the records 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. 2312, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2312, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair