REPORT TITLE:
Federal Impact Aid; Education


DESCRIPTION:
Prohibits federal impact aid received by the DOE from being
returned to the general fund unless legislature, by concurrent
resolution, approves the return of the aid to the general fund.
Allows excess federal impact aid to be spent by the DOE or
deposited by the governor into an education reserve special fund.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2759
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FEDERAL AID.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 29, Hawaii Revised Statutes, is amended
 
 2 by adding three new sections to be appropriately designated and
 
 3 to read as follows:
 
 4      "�29-     Federal fund reimbursements.  (a)  Except as
 
 5 otherwise provided by law, or except as prohibited by specific
 
 6 grant conditions, all federal fund reimbursements received by
 
 7 state programs shall be returned to the general fund, or other
 
 8 appropriate program fund.
 
 9      (b)  The governor shall submit a report to the legislature
 
10 concerning the exact amount and specific nature of federal fund
 
11 reimbursements returned to the general fund pursuant to
 
12 subsection (a).  The governor shall submit the report to the
 
13 legislature not less than twenty days prior to the convening of
 
14 each regular session.
 
15      (c)  Federal impact aid received by the department of
 
16 education shall not be returned to the general fund in accordance
 
17 with subsection (a) unless the legislature, by concurrent
 
18 resolution, approves the return of the federal impact aid to the
 
19 general fund during any regular or special session next following
 

 
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 1 the receipt of the federal impact aid.
 
 2      �29-     Federal impact aid; general fund offset.  Except as
 
 3 provided in section 29-   (c), if the amount of federal impact
 
 4 aid received by the department of education exceeds the
 
 5 authorized appropriation in the General Appropriations Act or the
 
 6 Supplemental Appropriations Act, then the governor shall:
 
 7      (1)  Allow the department of education to increase the
 
 8           federal fund expenditure ceiling by the amount that the
 
 9           federal impact aid received by the department of
 
10           education exceeds the authorized appropriation in the
 
11           General Appropriations Act or the Supplemental
 
12           Appropriations Act; or
 
13      (2)  Upon the request of the department of education,
 
14           deposit the excess federal impact aid into the
 
15           education reserve special fund established pursuant to
 
16           section 29-   .
 
17      �29-     Education reserve special fund.  There is
 
18 established in the state treasury the education reserve special
 
19 fund.  The special fund shall consist of excess federal impact
 
20 aid deposited by the governor into the fund pursuant to section
 
21 29-   (2).  The purpose of the special fund shall be to offset
 
22 the resultant shortfall in federal funds when the amount of
 
23 federal impact aid received by the department of education is
 

 
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 1 less than the authorized appropriation in the General
 
 2 Appropriations Act or the Supplemental Appropriations Act."
 
 3      SECTION 2.  If any provision of this Act, or the application
 
 4 thereof to any person or circumstance is held invalid, the
 
 5 invalidity does not affect other provisions or applications of
 
 6 the Act which can be given effect without the invalid provision
 
 7 or application, and to this end the provisions of this Act are
 
 8 severable.
 
 9      SECTION 3.  It is the intent of this Act not to jeopardize
 
10 the receipt of any federal aid nor to impair the obligation of
 
11 the State or any agency thereof to the holders of any bond issued
 
12 by the State or by any such agency, and to the extent, and only
 
13 to the extent, necessary to effectuate this intent, the governor
 
14 may modify the strict provisions of this Act, but shall promptly
 
15 report any such modification with reasons therefor to the
 
16 legislature at its next session thereafter for review by the
 
17 legislature.
 
18      SECTION 4.  New statutory material is underscored.
 
19      SECTION 5.  This Act shall take effect upon its approval.
 
20 
 
21                           INTRODUCED BY:_________________________