STAND. COM. REP. NO. 262

Honolulu, Hawaii

RE: S.B. No. 172

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 172 entitled:

"A BILL FOR AN ACT RELATING TO GRANTS,"

begs leave to report as follows:

The purpose and intent of this measure is to extend eligibility for grants under Chapter 42F, Hawaii Revised Statutes, to organizations that spend at least ninety percent of their respective operating budgets in the State.

Your Committee received written comments in support of this measure from the Kauai County Council, Managing Director of the County of Kauai, Hui Makaaina o Makana, and National Tropical Botanical Garden.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Office of Community Services.

Your Committee finds that extending eligibility for grants under Chapter 42F, Hawaii Revised Statutes, will ultimately benefit the State. However, your Committee believes that the percentage of an organization's operating budget that is spent in the State may be an ineffective measure of qualification for these grants.

Your Committee has amended this measure by:

(1) Replacing language allowing an organization to qualify for a grant under Chapter 42F, Hawaii Revised Statutes, if the organization spends at least ninety percent of its operating budget in the State with language allowing the organization to qualify if the organization is registered with the Department of Commerce and Consumer Affairs and in possession of a valid certificate of vendor compliance issued by the State; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 172, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 172, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair