HRS §42F-104
How grant money is paid out
This section says that when the state gives a grant, the money is paid through a contract between the state agency in charge and the person or group getting the grant. The contract starts on the first day of the budget year, but up to one-fourth of the money can be paid before the contract is signed.
state agencies
The statute, as written — Contracts for grants
An appropriation for a grant shall be disbursed by a contract between the state agency designated the expending agency for the appropriation by the legislature, and the recipient of the grant. The contract shall be effective as of the first day of the fiscal year for which the funds for the grant are appropriated; provided that up to one-fourth of the total amount appropriated may be disbursed prior to the execution of the contract.
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