STAND. COM. REP. NO. 2351
RE: S.B. No. 2485
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Education, to which was referred S.B. No. 2485 entitled:
"A BILL FOR AN ACT RELATING TO EDUCATION,"
begs leave to report as follows:
The purpose and intent of this measure is to allow the Department of Education, State Public Charter School Commission, or a charter authorizer to retain and expend federal indirect overhead reimbursements not just from discretionary grants but from non-discretionary grants as well.
Your Committee received testimony in support of this measure from the Department of Education.
Your Committee finds that under existing law indirect cost funds are comprised of reimbursements only from federal discretionary grants received by the Department for costs incurred in support of administrative and general business operations. Certain amounts from indirect cost funds are placed in the Federal Grants Revolving Fund under section 302A-1405, Hawaii Revised Statutes.
Broadening the indirect cost funds to include reimbursements from all federal grants will allow more funds to be deposited into the Federal Grants Revolving Fund. Accordingly to the Department, these funds could be used to pursue additional discretionary grants, monitor grant execution, comply with grant requirements, and audit grant expenditures.
Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2485, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2485, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Education,
MICHELLE N. KIDANI, Chair