STAND. COM. REP. NO.887

Honolulu, Hawaii

, 2003

RE: S.B. No. 386

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 386 entitled:

"A BILL FOR AN ACT RELATING TO UTILIZATION OF FEDERAL FUNDS,"

begs leave to report as follows:

The purpose of this measure is to prohibit the Governor and the Director of Finance from restricting a state agency's ability to expend federal grant moneys if the granting federal agency has already approved the state agency's grant application.

In addition, this measure allows the granting federal agency and the state agency, by agreement, to modify the amount of federally granted funds to be expended by the state agency without the approval of the Governor or the Director of Finance.

Your Committee finds that state agencies are currently required to seek the approval of the Governor when making certain expenditures of federal grant moneys, even though the expenditures have already been approved by the federal granting agency. This superfluous approval process is wasteful, interferes with the timely allocation and expenditure of federal grant moneys, and does not improve grant management or program administration.

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. 386 and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair