SB2449

THE SENATE	S.B. NO.	2449
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

A BILL FOR AN ACT

relating to grant-in-aid awards.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 42F-102, Hawaii Revised Statutes, is amended to read as follows:

"§42F-102 Applications for grants. Requests for grants shall be submitted to the appropriate standing committees of the legislature at the start of each regular session of the legislature. Each request shall state:

(1) The name of the requesting organization or individual;

(2) The public purpose for the grant;

(3) The services to be supported by the grant;

(4) The target group; [~~and~~]

(5) The cost of the grant and the budget[.]; and

(6) The potential environmental impacts of the grant."

SECTION 2. Section 42F-103, Hawaii Revised Statutes, is amended to read as follows:

"§42F-103 Standards for the award of grants. (a) Grants shall be awarded only to individuals who, and organizations that:

(1) Are licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded;

(2) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

(3) Agree not to use state funds for entertainment or lobbying activities; and

(4) Allow the state agency to which funds for the grant were appropriated for expenditure, legislative committees and their staff, and the auditor full access to their records, reports, files, and other related documents and information for purposes of monitoring, measuring the effectiveness, and ensuring the proper expenditure of the grant.

(b) In addition, a grant may be made to an organization only if the organization:

(1) Is incorporated under the laws of the State; and

(2) Has bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided.

(1) Has been determined and designated to be a nonprofit organization by the Internal Revenue Service; and

(2) Has a governing board whose members have no material conflict of interest and serve without compensation.

(d) Awards shall be prioritized in relation to the grant's potential environmental impacts, with highest priority given to those grants that will promote sustainability and enhance the quality of the environment. Grants with potential negative environmental impacts shall be given lowest priority or disqualified, as determined by the house finance committee or senate ways and means committee, as appropriate.

[~~(d)~~] (e) If a grant is used by an organization for the acquisition of land, when the organization discontinues the activities or services on the land acquired for which the grant was awarded and disposes of the land in fee simple or by lease, the organization shall negotiate with the expending agency for a lump sum or installment repayment to the State of the amount of the grant used for the acquisition of the land. This restriction shall be registered, recorded, and indexed in the bureau of conveyances or with the assistant registrar of the land court as an encumbrance on the property. Amounts received from the repayment of a grant under this subsection shall be deposited into the general fund."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________