SB3281 HD1

SECTION 1. The legislature finds that pursuant to Act 398, Session Laws of Hawaii 1988, the Bernice Pauahi Bishop Museum was designated as the State of Hawaii Museum of Natural and Cultural History and pursuant to Act 291, Session Laws of Hawaii 2007, the Friends of Iolani Palace was designated as the State of Hawaii Museum of Monarchy History. The legislature also finds that the intent of these designations was to provide the museums with a reliable funding source so that they would no longer be dependent on grants and private donations. The legislature further finds that during the regular session of 2022, $7,500,000 was appropriated to the State of Hawaii Museum of Natural and Cultural History and $2,000,000 was appropriated to the State of Hawaii Museum of Monarchy History.

The legislature believes that to ensure that the operations of the museums are in alignment with the State's vision, two ex officio, nonvoting members, to be selected from certain state agencies, should be added to the board of directors of each museum.

The purpose of this Act is to:

(1) Require that the State of Hawaii Museum of Natural and Cultural History and State of Hawaii Museum of Monarchy History boards of directors each include two ex officio, nonvoting members representing state agencies that are in direct partnership with each museum on projects that benefit the State;

(2) Require the State of Hawaii Museum of Natural and Cultural History to submit an annual report to the legislature;

(3) Establish standards and conditions that the State of Hawaii Museum of Natural and Cultural History must meet to receive state funds; and

(4) Appropriate funds for the renovation of Bishop Hall.

SECTION 2. Section 6E-35, Hawaii Revised Statutes, is amended to read as follows:

"§6E-35 Iolani Palace. (a) The official designation of the palace of the former monarchs of Hawaii shall be Iolani Palace.

(b) The official designation of the Friends of Iolani Palace shall be the State of Hawaii Museum of Monarchy History[.]; provided that effective July 1, 2024, in order for the designation to remain in effect, the board of directors shall include two ex officio, nonvoting members, to be selected by the comptroller, representing state agencies that are in direct partnership with the State of Hawaii Museum of Monarchy History on projects that benefit the State of Hawaii.

(c) The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the State of Hawaii Museum of Monarchy History; provided that if the museum contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

[~~(c)~~] (d) To receive state funds, the State of Hawaii Museum of Monarchy History shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which funds are appropriated;

(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 the funds for entertainment or lobbying activities;

(4) Be incorporated under the laws of the State;

(5) Have bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided;

(6) Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

(7) Have a governing board whose [~~members~~] membership shall include the ex officio, nonvoting members representing certain state agencies pursuant to subsection (b), and other members, who shall have no material conflict of interest and serve without compensation.

[~~(d)~~] (e) The comptroller and state auditor shall have the authority to examine the use of funds appropriated to the State of Hawaii Museum of Monarchy History.

[~~(e)~~] (f) The State of Hawaii Museum of Monarchy History shall provide to the legislature an annual report no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year."

SECTION 3. Section 6E-40, Hawaii Revised Statutes, is amended to read as follows:

"§6E-40 Bernice Pauahi Bishop Museum. (a) The official designation of the Bernice Pauahi Bishop Museum shall be the State of Hawaii Museum of Natural and Cultural History[.]; provided that effective July 1, 2024, in order for the designation to remain in effect, the board of directors shall include two ex officio, nonvoting members, to be selected by the comptroller, representing state agencies and departments that are in direct partnership with the State of Hawaii Museum of Natural and Cultural History on projects that benefit the State of Hawaii.

(b) The qualifying standards and conditions related to the receipt of funds contained in chapter 42F shall not apply to funds received by the State of Hawaii Museum of Natural and Cultural History; provided that if the museum in turn contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

(c) The State of Hawaii Museum of Natural and Cultural History shall provide to the legislature an annual report no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year.

(d) To receive state funds, the State of Hawaii Museum of Natural and Cultural History shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which funds are appropriated;

(3) Agree not to use the funds for entertainment or lobbying activities;

(4) Be incorporated under the laws of the State;

(5) Have bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided;

(6) Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

(7) Have a governing board whose membership shall include the ex officio, nonvoting members representing certain state agencies pursuant to subsection (a), and other members, who shall have no material conflict of interest and serve without compensation.

(e) The comptroller and state auditor shall have the authority to examine the use of funds appropriated to the State of Hawaii Museum of Natural and Cultural History."

SECTION 4. Section 6E-61, Hawaii Revised Statutes, is amended to read as follows:

"[[]§6E-61[]] Biological survey; designation. A Hawaii biological survey is established and designated as a program of the State of Hawaii [~~museum of natural and cultural history.~~] Museum of Natural and Cultural History. The survey shall consist of an ongoing natural history inventory of the Hawaiian archipelago to locate, identify, evaluate, and maintain the reference collections of all native and non-native species of flora and fauna within the State for a wide range of uses. The survey shall coordinate with and complement the work of the Hawaii heritage program, established by chapter 195, which manages data on rare native plants, animals, and natural communities throughout the State. To expand the use, control, and knowledge of biological species, the survey shall also be conducted in coordination with the existing databases of the department of agriculture, the department of land and natural resources, the [~~University~~] university of Hawaii, and other appropriate organizations."

SECTION 5. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the renovation of Bishop Hall.

The sum appropriated shall be expended by the state foundation on culture and the arts for the purposes of this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	3281
THIRTY-SECOND LEGISLATURE, 2024		S.D. 2
STATE OF HAWAII		H.D. 1