STAND. COM. REP. NO.1247-02
RE: S.B. No. 2097
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Finance, to which was referred S.B. No. 2097, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO FEDERAL IMPACT AID,"
begs leave to report as follows:
The purpose of this bill is to place under legislative oversight, federal Impact Aid and U.S. Department of Defense funds (Federal Funds) received by the Department of Education (DOE).
Specifically, this bill:
(1) Requires the Comptroller to establish new accounts for all Federal Funds in each fiscal year and requires all unencumbered cash balances in accounts for Federal Funds established in previous fiscal years to be deposited into current fiscal year accounts;
(2) Prohibits expenditure of Federal Funds by the DOE without legislative appropriation;
(3) Requires the Board of Education to submit semiannual reports to the Legislature regarding the disposition of Federal Funds;
(4) Repeals the Governor's authority to authorize DOE to expend the Federal Funds; and
(5) Repeals the provision prohibiting Federal Funds and federal indirect overhead reimbursements received by the DOE from being returned to the general fund.
The Department of Education and the Chamber of Commerce of Hawaii supported this bill. The Hawaii State Teachers Association opposed this measure. An officer of the U.S. Pacific Command offered comments.
Your Committee has amended this measure by:
(1) Restoring the provision prohibiting Federal Funds and federal indirect overhead reimbursements received by the DOE from being returned to the general fund; and
(2) Making other technical, nonsubstantive amendments for style and clarity.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2097, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2097, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
DWIGHT Y. TAKAMINE, Chair