Bill Text: HI HB2487 | 2018 | Regular Session | Introduced
Bill Title: Relating To Grants In Aid.
Spectrum: Slight Partisan Bill (Democrat 5-3)
Status: (Introduced - Dead) 2018-01-29 - Referred to FIN, referral sheet 9 [HB2487 Detail]
Download: Hawaii-2018-HB2487-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2487 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to grantS in aid.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a lack of transparency in the grant approval process. There are no clear guidelines or criteria established under chapter 42F, Hawaii Revised Statues. As a result, the process of awarding grant recipients varies each year and occurs behind closed doors. Additionally, applicants are not informed at the end of the process as to how grant awardees were selected. Grant recipients historically have been nonprofit organizations, but in 2017, a number of lawmakers and individuals were surprised to find out that the legislature had awarded a $605,000 grant to a for-profit well-drilling company on the island of Hawaii. It is unacceptable for a process that distributes millions of taxpayer dollars every legislative session to be opaque and unaccountable.
The purpose of this Act is to reform the approval process for grants in aid to increase transparency and accountability and help grant applicants navigate the approval process. Grant evaluation criteria shall be posted to the legislative website clearly stating the criteria by which grant applications will be evaluated. Applicants for grants-in-aid must be 501 tax-exempt as defined by the Internal Revenue Service. Applicants shall demonstrate that they perform a religious, charitable, scientific, or education purpose, or provide services for economically or socially disadvantaged communities. A "grants in aid advisory commission" is created to review and approve applications according to public, objective criteria. The legislature may only approve applications after initial approval by the advisory committee. Finally, the advisory commission's recommendations shall be posted to the legislative website, along with an explanation for why each applicant was recommended or not recommended to receive a grant.
SECTION 2. Chapter §42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§42F- Establishment of grants in aid advisory commission; grants in aid advisory commission functions. (a) There shall be established a grants in aid advisory commission to advise the legislature on grants issued under this section.
(b) The commission shall consist of seven members
who shall serve for terms of five years and until their successors have been
appointed and qualified.
(c) The appointments shall commence no later than
January 1, 2019, and shall be as follows:
(1) One member
appointed by the House Committee on Finance; and
(2) One member
appointed by the Senate Ways and Means Committee; and
(3) Five members
appointed by the Governor of Hawaii.
Vacancies in these positions shall be filled in
the same manner. The members of the commission shall serve without compensation
but shall be reimbursed for expenses, including travel expenses, necessary for
the performance of their duties.
(d) The commission shall create criteria by which
it shall independently evaluate all applications for grants in aid.
(e) The commission
shall submit a report to the legislature no later than March 30 that
identifies:
(1) Applications
recommended for approval;
(2) Applications
recommended for rejection; and
(3) At least one
specific reason for making each recommendation, based upon the commission's
criteria."
SECTION 3. Chapter 42F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§42F- Public notification. (a) Grant evaluation criteria that clearly state how grant applications will be evaluated shall be posted to the legislative website no later than the beginning of each regular session.
(b) Upon submittal of the commission's report to the legislature, the report shall be posted to the legislative website in its entirety."
SECTION 4. Section 42F-101, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
""Domestic"
means organized under the laws of this State.
"Nonprofit" means exempt from federal income tax pursuant to Section 501(c)(3) of the United States Internal Revenue Code."
SECTION 5. Section 42F-103, Hawaii Revised Statutes, is amended to read as follows:
"§42F-103 Standards for the award of
grants. (a) Grants shall be awarded only to [individuals
who, and] domestic nonprofit organizations that:
(1) Are
licensed or accredited, in accordance with federal, state, or county statutes,
rules, or ordinances, to conduct the activities or provide the services for
which a grant is awarded;
(2) Comply
with all applicable federal and state laws prohibiting discrimination against
any person on the basis of race, color, national origin, religion, creed, sex,
age, sexual orientation, or disability;
(3) Agree
not to use state funds for entertainment or lobbying activities; [and]
(4) Allow
the state agency to which funds for the grant were appropriated for
expenditure, legislative committees and their staff, and the auditor full
access to their records, reports, files, and other related documents and
information for purposes of monitoring, measuring the effectiveness, and ensuring
the proper expenditure of the grant[.]; and
(5) Are
recommended for approval for state funds by the grants in aid advisory
commission.
(b)
In addition, a grant may be made to [an] a nonprofit
organization only if the organization:
(1) Is
incorporated under the laws of the State; and
(2) Has
bylaws or policies that describe the manner in which the activities or services
for which a grant is awarded shall be conducted or provided.
[(c)
Further, a grant may be awarded to a nonprofit organization only if the
organization:]
[(1) Has
been determined and designated to be a nonprofit organization by the Internal
Revenue Service; and
(2)] (3) Has a governing board whose members have no
material conflict of interest and serve without compensation[.]; and
(4) Is
organized and operated exclusively for religious, charitable, scientific, or
educational purposes, or provides services to economically or socially
disadvantaged populations, or provides services for public benefit in the areas
of the arts, culture, economic development, or the environment.
(d) If a grant is used by an organization for the acquisition of land, when the organization discontinues the activities or services on the land acquired for which the grant was awarded and disposes of the land in fee simple or by lease, the organization shall negotiate with the expending agency for a lump sum or installment repayment to the State of the amount of the grant used for the acquisition of the land. This restriction shall be registered, recorded, and indexed in the bureau of conveyances or with the assistant registrar of the land court as an encumbrance on the property. Amounts received from the repayment of a grant under this subsection shall be deposited into the general fund."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2018.
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INTRODUCED BY: |
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Report Title:
Grants; Grants in Aid; Legislative Policies
Description:
Amends the approval process for grants in aid. Establishes grants in aid advisory commission and requires that grant recipients be domestic nonprofit organizations.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
