TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO GRANTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is necessary to improve the grant application and approval process established under chapter 42F, Hawaii Revised Statutes, spread grant appropriations among more recipients, and fund direct services, rather than overhead costs, of grant recipients.
The purpose of this Act is to add new standards for the appropriation of grants, as required by article VII, section 4, of the Constitution of the State of Hawaii, increase transparency in the legislative grant process, and increase the opportunity for more applicants to receive grants by establishing the following legislative policies:
(1) To make appropriations for grants during the regular session of each odd-numbered year for the ensuing fiscal biennium, but still permit the legislature to add new or amend or repeal existing grant appropriations during the regular session of an even-numbered year or a special session;
(2) To appropriate funds for not more than one grant for each grant recipient during a fiscal biennium; and
(3) To place a low priority on requests to fund general and administrative expenses.
Because this legislature cannot bind the actions of future legislatures, this Act expressly declares that adherence to the policies shall be subject to the discretion of the legislature and availability of funds.
SECTION 2. Chapter 42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§42F- Legislative policies; appropriation of funds for grants during legislative sessions; limit on number of grants to a recipient during a fiscal biennium; priority of funding requests for general and administrative expenses. (a) It is the policy of the legislature to appropriate funds for grants during the regular session of each odd-numbered year for each fiscal year of the ensuing fiscal biennium.
This section shall not be construed as prohibiting the legislature from adding new appropriations, or amending or repealing existing appropriations, for grants during the regular session of an even-numbered year or a special session.
(b) It is the policy of the legislature to appropriate funds for not more than one grant for each grant recipient during a fiscal biennium.
(c) It is the policy of the legislature to place a low priority on a request from a grant applicant to fund the applicant's general and administrative expenses with a grant appropriation.
(d) The adherence to a policy set forth in this section shall be subject to the exclusive discretion of the legislature and availability of funds, and no person shall take legal action against the legislature, State, or grant recipient for a deviation from the policy.
(e) For the purpose of this section:
"Ensuing fiscal biennium" means the fiscal biennium commencing on the July 1 that immediately follows the convening of the regular session of an odd-numbered year.
"General and administrative expenses" means expenses of the applicant that are not directly related to the provision of goods or services by the applicant."
SECTION 3. Section 42F-102, Hawaii Revised Statutes, is amended to read as follows:
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.] when requested by the standing committees.
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."
SECTION 4. 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.
(c) Further, a grant may be awarded to a nonprofit organization only if the organization:
(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) If a grant is used by an organization for the acquisition of land or
the planning, design, construction, renovation, operations, or equipment of
facilities, when the organization discontinues the activities or
services on the land acquired or facilities for which the grant was
awarded and disposes of the land or facilities in fee simple or by
lease, then the organization shall negotiate with the [
agency] department of budget and finance for a lump sum or
installment repayment to the State of the amount of the grant used for the
acquisition of the land[ .] or the planning, design, construction,
renovation, operations, or equipment of facilities. 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.
(e) If a grant is used by an organization, then the organization shall publicly recognize that the project was supported by the State through an awarded grant."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2030.
Grants; Legislative Policies
Establishes legislative policies for the awarding of grants, subject to legislative discretion and funding availability. Requires an organization to negotiate a lump sum or installment repayment to the State of the grant used for the planning, design, construction, renovation, operations, or equipment of facilities when it discontinues the activities and disposes of the land by sale. Requires organizations to publicly recognize that a project was supported by the State when awarded a grant. (SB3070 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.