STAND. COM. REP. NO. 370

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 812
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.B. No. 812 entitled: 

     "A BILL FOR AN ACT RELATING TO THE BUDGET,"

begs leave to report as follows:

     The purpose of this bill is to provide equitable rewards to
the Department of Human Services (DHS) by allowing DHS to retain
federal funding awards for superior performance.

     DHS submitted testimony in support of this measure.  The
Department of Budget and Finance submitted testimony in
opposition of this measure.

     Your Committee finds that it is only fair to allow DHS to
retain federal funding awards for outstanding performance within
DHS instead of returning it to the general fund.

     Your Committee has amended this measure by:

     (1)  Allowing DHS to use the awards for general operations;

     (2)  Specifying that the awards will maintain and enhance
          the superior performance of units which were
          responsible for the funds being awarded to the State;
          and

     (3)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

 
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                                 STAND. COM. REP. NO. 370
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 812, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 812, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair

 
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