Appropriates $1,000,000 for grants-in-aid to the office of community services to provide food for Hawaii's needy, and $1,000,000 to the housing and community development corporation of Hawaii to provide financial assistance that addresses the housing needs of Hawaii's needy, in light of the recent economic turmoil created by the terrorist attacks on September 11, 2001.

A BILL FOR AN ACT

SECTION 1. The terrorist attacks on September 11, 2001, have had a devastating economic impact on the State of Hawaii. Severe slowdowns in the travel and tourism industries have seriously damaged our tourism-based economy and have cost many workers their jobs. The massive number of layoffs, furloughs, and other cutbacks in the workforce have forced, and will force many families to struggle to attain even the basic necessities for living such as food and shelter.

The legislature finds that there is a pressing need to deal with this crisis.

Social welfare organizations have indicated that there is a growing demand for food, but a decreasing supply of food to meet those needs. The situation is further exacerbated by the fact that public donations have been primarily directed to New York City, while fewer donations have come in for local causes. The demand for housing assistance is also growing as most shelters and other forms of housing are already at full capacity. Advocates for the homeless have predicted that in the coming months, hundreds of families will be forced to live in cars, on beaches, and in parks, as the economic downturn intensifies.

An additional potential problem will arise when eight hundred families currently receiving federal welfare benefits will no longer qualify for benefits after November, 2001. These families will also need assistance in the coming months, further depleting already scarce resources.

The legislature finds that expenditures from the emergency budget and reserve fund established by section 328L-3, Hawaii Revised Statutes, are needed to meet the conditions of emergency, economic downturn, and unforeseen reduction in revenues that presently confront the State. Further, the legislature finds that the appropriations in this Act are consistent with the purposes of the emergency budget and reserve fund.

The purpose of this Act is to provide funding for food and financial assistance for housing to assist those who lack these critical items.

SECTION 2. There is appropriated out of the emergency budget and reserve fund of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2001-2002 for the office of community services of the department of labor and industrial relations to fund grants-in-aid to provide food for Hawaii's needy.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 3. Of the $1,000,000 appropriation for fiscal year 2001-2002 from the emergency budget and reserve fund to the office of community services of the department of labor and industrial relations, there is appropriated the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2001-2002 to fund grants-in-aid to provide food for Hawaii's needy.

The sum appropriated shall be expended by the office of community services of the department of labor and industrial relations for the purposes of this Act; provided that the sum appropriated in this section shall not be expended for any administrative purposes.

SECTION 4. There is appropriated out of the emergency budget and reserve fund of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2001-2002 for the housing and community development corporation of Hawaii to provide financial assistance that addresses the housing needs of Hawaii's needy.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 5. Of the $1,000,000 appropriation for fiscal year 2001-2002 from the emergency budget and reserve fund to the housing and community development corporation of Hawaii, there is appropriated the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2001-2002 to provide financial assistance that addresses the housing needs of Hawaii's needy.

The sum appropriated shall be expended by the housing and community development corporation of Hawaii for the purposes of this Act; provided that the sum appropriated in this section shall not be expended for any administrative purposes.

SECTION 6. The expenditure of funds appropriated in this Act shall be subject to financial audits by the office of the legislative auditor.

SECTION 7. The office of community services and the housing and community development corporation of Hawaii shall submit detailed expenditure reports of the funds appropriated in this Act to the legislature no later than twenty days before the convening of the Regular Session of 2002.

SECTION 8. This Act shall take effect upon its approval.