REPORT TITLE:
Grants and Subsidies


DESCRIPTION:
Requires the State to withhold or collect the remaining balance
of grants or subsidies, if the recipient can no longer provide
the services for which a grant or subsidy was appropriated.
Requires the expending agency to negotiate contract provisions to
ensure compliance with the public purpose of appropriated funds.
(HB1061 SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1061
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO GRANTS AND SUBSIDIES.



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

 1      SECTION 1.  Section 42F-104, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]42F-104[]]  Contracts for grants and subsidies.  An
 
 4 appropriation for a grant or subsidy shall be disbursed by a
 
 5 contract between the state agency designated the expending agency
 
 6 for the appropriation by the legislature, and the recipient of
 
 7 the grant or subsidy.  The funds shall be used only for the
 
 8 public purpose for which the funds were appropriated by the
 
 9 legislature.  The expending agency shall negotiate contract
 
10 provisions to ensure that the recipient of funds complies with
 
11 the public purpose for which the funds were appropriated, and the
 
12 expending agency shall secure compliance with the contract and
 
13 this section.   The expending agency shall withhold the remaining
 
14 balance of the grant or subsidy, or recover the remaining balance
 
15 of the grant or subsidy, if the recipient can no longer provide
 
16 the services for which the grant or subsidy was appropriated.
 
17 All recoveries shall be realizations of the fund from which the
 
18 grant or subsidy was made.  The contract shall be effective as of
 
19 the first day of the fiscal year for which the funds for the
 

 
Page 2                                                     1061
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1 grant or subsidy are appropriated[,]; provided that up to one
 
 2 fourth of the total amount appropriated may be disbursed prior to
 
 3 the execution of the contract."
 
 4      SECTION 2.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 3.  This Act shall take effect on July 1, 1999.