SB2813 HD1

Report Title:

Honolulu Symphony; State of Hawaii Endowment Fund; Appropriation

Description:

Appropriates $10,000,000 to the State of Hawaii endowment fund to be matched with private funds. Statutorily reflects the increased capital contribution from the State. (SB2813 HD1)

THE SENATE	S.B. NO.	2813
TWENTY-THIRD LEGISLATURE, 2006		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

relating to the state of hawaii endowment fund.

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

SECTION 1. The purpose of this Act is to appropriate funds to the State of Hawaii endowment fund, which is a separate fund of the Honolulu symphony trust. Income and capital gains from the fund will be used for the production of music by an Oahu-based symphony orchestra as determined by the state foundation on culture and the arts.

SECTION 2. Section 40-88, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be established as a separate fund of the Honolulu symphony trust created by the trust agreement dated December 5, 1986, a fund to be known as the State of Hawaii endowment fund. The income and capital gains from the [~~$2,000,000~~] $10,000,000 contributed by the State of Hawaii shall be transferred on a quarterly basis to the state foundation on culture and the arts, performing and visual arts events private contribution account to be used for the production of music by an Oahu-based symphony orchestra as determined by the state foundation on culture and the arts. The State of Hawaii endowment fund shall be subject to the restrictions that:

(1) No part of the principal amount contributed to the fund by the State or by matching grants shall be used for operations of the Honolulu symphony;

(2) Income and capital gains from the fund shall not be distributed for use in the operations of the Honolulu symphony during any period that the value of the fund shall be less than the principal amounts contributed to the fund; and

(3) The amounts contributed to the fund by the State shall revert to the State to the extent that matching or other conditions to the grant of the funds are not met, and the fund also shall be subject to additional restrictions as may be imposed with respect to transfers of funds in future legislation appropriating sums to be contributed to the fund."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 to be deposited into the State of Hawaii endowment fund for the production of music by an Oahu-based symphony orchestra; provided that the sum appropriated shall be matched dollar-for-dollar by private funds.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2006.