STAND. COM. REP. NO. 494

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 643
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.B. No. 643 entitled: 

     "A BILL FOR AN ACT RELATING TO THE RANDOLPH-SHEPPARD
     REVOLVING ACCOUNT,"

begs leave to report as follows:

     The purpose of this bill is to authorize the state committee
of blind vendors to expend moneys from the Randolph-Sheppard
revolving account for the hiring of private attorneys.

     Specifically, this bill amends section 347-12.5, Hawaii
Revised Statutes, to add the hiring of private attorneys to the
uses authorized for the Randolph-Sheppard revolving account and
further authorizes the Director of Human Services to transfer up
to $30,000 annually from the account to a checking account in the
name of the state committee of blind vendors for its use.
Finally, a report and annual accounting of the funds transferred
must be submitted to the Director of Human Services and the
Legislature no later than sixty days following the close of each
fiscal year.

     Your Committee wishes to note that, during the discussion on
this bill, the need was raised to have the state committee of
blind vendors review and approve the transfer and use of any
moneys as required by the bill for the stated purposes.


 
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                                 STAND. COM. REP. NO. 494
                                 Page 2

 
     Upon further consideration, your Committee has amended this
bill to:

     (1)  Subject the use of moneys from the Randolph-Sheppard
          revolving account for the hiring of private attorneys
          to the condition that, beginning July 1, 1999, any
          moneys deposited in the account that are derived from
          vending machine income must be identified as to whether
          the income is generated from federal, as opposed to
          state or county operations, and that all federal-source
          moneys must be segregated into a federal-source
          subaccount; and

     (2)  Prohibit the transfer or use of moneys from the
          federal-source subaccount for the hiring of private
          attorneys.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 643, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 643, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair

 
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