Creates a King Kamehameha celebration commission trust fund administered by the Hawaii Community Foundation and King Kamehameha celebration commissioners to fund the King Kamehameha parade and festivities. (SD1)

A BILL FOR AN ACT

SECTION 1. The King Kamehameha parade and festivities have been a long standing tradition in Hawaii which celebrate the Hawaiian culture. However, in recent years, funding the festivities has become a challenge. The legislature finds that the King Kamehameha parade and festivities serve as a valuable community event and should be preserved. The legislature further finds that the festivities contribute significantly to Hawaii's economy as a revenue-generating event.

The purpose of this Act is to create a trust fund to be administered by the Hawaii Community Foundation and the King Kamehameha commissioners to fund the King Kamehameha parade and festivities.

SECTION 2. Chapter 8, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§8-   King Kamehameha celebration commission fund. (a) There is established the King Kamehameha celebration commission fund as a separate fund of the Hawaii Community Foundation, a Hawaii nonprofit organization. Moneys received from the State, county, or federal government, private contributions of cash or other property, and the income and capital gains earned by the fund shall constitute fund assets.

(b) The Hawaii Community Foundation shall expend moneys from the fund in the form of either grants to organizations or contracts with private vendors for arrangements for the celebration each year, to commemorate the memory of the great Hawaiian warrior and statesman, King Kamehameha I, in accordance with section 8-5.

(c) The fund may receive contributions, grants, endowments, or gifts in cash or otherwise from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. The legislature intends that public and private sectors review and investigate all potential funding sources. The State may appropriate moneys to the fund.

(d) The King Kamehameha celebration commission shall serve as an advisory board, which shall be responsible for:

(e) In managing the moneys in the fund, the Hawaii Community Foundation shall exercise ordinary business care and prudence given the facts and circumstances prevailing at the time of action or decision. In doing so, the Hawaii Community Foundation shall consider its long and short-term needs in carrying out its purposes, its present and anticipated financial requirements, expected total return on its investments, price trends, and general economic conditions.

(f) There may be an endowment component of the fund, and the Hawaii Community Foundation may accumulate net income and add the same to the principal.

(g) The use of any state moneys may be restricted by legislation appropriating these moneys to the fund.

(h) The Hawaii Community Foundation may expend principal from the fund for the purposes of the fund in accordance with the criteria established by the King Kamehameha celebration commission in subsection (d).

(i) Any organization submitting a proposal under this section to the Hawaii Community Foundation for moneys shall meet the following standards at the time of application:

(j) All proposals submitted to the Hawaii Community Foundation for moneys shall be approved by the department of accounting and general services for consistency in promoting the celebration of the Hawaiian culture.

(k) Organizations or agencies that receive a grant or a contract under this section shall comply with the following conditions before receiving the grant or contract:

(l) Chapter 103D shall not apply to organizations or agencies that apply for grants or contracts under this section; provided that the Hawaii Community Foundation shall be held accountable for the use of the funds under a contract with the department of accounting and general services.

(m) Any contract awarded by the Hawaii Community Foundation shall be made with as much competition as is practical to execute its purposes.

(n) The fund shall be audited annually by an independent auditor. The results of each annual audit shall be submitted to the department of accounting and general services not later than thirty days from the date the Hawaii Community Foundation receives the audit results. In addition, the Hawaii Community Foundation shall retain for a period of three years and permit the department, state legislators, and the auditor, or their duly authorized representatives, to inspect and have access to any documents, papers, books, records, and other evidence that are pertinent to the fund.

(o) The fund shall not be placed in the state treasury, and the State shall not administer the fund. The State shall not be liable for the operation or solvency of the fund or the Hawaii Community Foundation.

(p) For every dollar of state moneys granted by the fund to the project, there shall be a minimum of $1 in value matched by the Hawaii Community Foundation from private, federal, county, or community service.

(q) The comptroller shall submit an annual report of the progress of the King Kamehameha celebration commission fund no later than twenty days prior to the convening of each regular session of the legislature.

(r) In the event of the termination of the fund or the dissolution of the Hawaii Community Foundation, the unspent appropriations made by the State, if any, shall revert back to the State. Any other amounts remaining in the King Kamehameha celebration commission fund shall be distributed at the recommendation of the King Kamehameha commission."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.