HOUSE OF REPRESENTATIVES

H.C.R. NO.

232

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

requesting A management and FINANCIAL AUDIT OF THE RANDOLPH-SHEPPARD REVOLVING ACCOUNT.

 

WHEREAS, the Randolph-Sheppard Revolving Account (Revolving Account) was established by section 347-12.5, Hawaii Revised Statutes (HRS), solely for the benefit of Hawaii's blind vendors, and the courts of this State have determined that the funds in the Revolving Account are held in trust for the benefit of all blind vendors and the program that serves them; and

WHEREAS, the Revolving Account consists of commissions on income from vending machines installed on federal, state, and county property; and

WHEREAS, funds in the Revolving Account, under both the federal Randolph-Sheppard Act, 20 USC. 107-107f, and under section 347-12.5, HRS, must be expended for specifically identified purposes, including:

(1) Retirement and other fringe benefits;

(2) Purchase of new blind vending facility equipment;

(3) Maintenance and replacement of vending facility equipment; and

(4) Management services;

and

WHEREAS, management services include supervision, inspection, quality control, consultation, accounting, regulating, in-service training, and other related services provided on a systematic basis to support and improve vending facilities operated by blind persons, but not on-going services or costs associated with the operation of an individual facility; and

WHEREAS, the Hawaii Committee of Blind Vendors is entitled to participate fully in making decisions for the Hawaii Blind Vending Facility Program under the federal Randolph-Sheppard Act; and

WHEREAS, the Legislature has received information indicating that the business management of the Hawaii Blind Vending Facility Program may have resulted in a number of administrative actions in violation of both the federal Randolph-Sheppard Act and section 347-12.5, HRS, in that revolving funds may have been expended improperly; and

WHEREAS, the Department of Human Services disagreed with the Auditor's conclusion in 2001 that the Revolving Account should be classified as a trust fund; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, the Senate concurring, that the Auditor is requested to perform a management and financial audit of the Revolving Account for the biennium period from July 1, 2002, to June 30, 2004; and

BE IT FURTHER RESOLVED that the Auditor is requested to address these and other related issues and report its findings and recommendations to the Legislature no later than 20 days before the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Commissioner of the U.S. Rehabilitation Services Administration, State Auditor, Director of Human Services, and Chairperson of the Hawaii Committee of Blind Vendors.

Report Title:

Blind Vendors; Randolph-Sheppard Revolving Account