SB441 HD1

SECTION 1. The legislature finds that the Hawaii Symphony Orchestra provides a major public service to the State and makes major musical contributions to the artistic and cultural education of the community through its performances.

The legislature further finds that the Hawaii Symphony Orchestra was founded in 1900 as the Honolulu Symphony Orchestra to establish and operate a professional symphony orchestra in Hawaii. The symphony hosts shows and programs featuring musicians and performing artists from around the world, in addition to promoting local talent within Hawaii.

The legislature notes that Act 382, Session Laws of Hawaii 1987 (Act 382), established the Honolulu Symphony Endowment Fund to provide financial support to the Honolulu Symphony. The legislative history of Act 382 stated that the Honolulu Symphony is a major cultural resource of Hawaii and is deserving of the support provided by Act 382; and in Act 258, Session Laws of Hawaii 1988, the name of the Honolulu Symphony Endowment Fund was changed to the State of Hawaii Endowment Fund. Subsequently, Act 175, Session Laws of Hawaii 1995, clarified that the income and capital gains of the State of Hawaii Endowment Fund were to be used for the production of music by an Oahu-based symphony orchestra and stated that it was to support a live symphonic orchestra for the residents in Hawaii.

The legislature further finds that the Hawaii Symphony Orchestra has suffered through financial instability throughout the last twenty years, including filing for bankruptcy and liquidating its assets for auction. In 2009, a small group of supporters, donors, and musicians revived the orchestra as it is known today, the Hawaii Symphony Orchestra, with the mission to reach out to the community through music. The legislature further notes that the Orchestra heavily relies on donations, concert ticket sales, and some state funding to fund its operations.

The legislature recognizes that the State has a certain responsibility to the Hawaii Symphony Orchestra Band for the public services it provides. The legislature notes that designating the Hawaii Symphony Orchestra as the "State of Hawaii Symphony Orchestra" will enable the Hawaii Symphony Orchestra to regularly obtain state funds to help cover its general operating costs in exchange for other services to the State, to be mutually negotiated.

The legislature finds that the Hawaii Symphony Orchestra has served and continues to serve a public purpose through free performances at parks and outdoor community centers, education concerts, showcasing young musicians, and performing side-by-side with the Hawaii Youth Symphony, as well as providing free admission for public school faculty, staff, and students to attend shows through department of education programs. These community program initiatives exemplify the Hawaii Symphony Orchestra's service and dedication to the public. The legislature concludes that exempting appropriations of state general revenues to the Hawaii Symphony Orchestra from the requirements of chapter 42F, Hawaii Revised Statutes, complies with the public purpose requirement of article VII, section 4, of the Hawaii State Constitution.

Accordingly, the purpose of this Act is to:

(1) Designate the Hawaii Symphony Orchestra as the "State of Hawaii Symphony Orchestra";

(2) Exempt state funds received by the State of Hawaii Symphony Orchestra from the requirements of chapter 42F, Hawaii Revised Statutes; and

(3) Appropriate funds for general operating costs of the State of Hawaii Symphony Orchestra and for deposit into the State of Hawaii Endowment Fund.

SECTION 2. Chapter 9, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§9- Hawaii Symphony Orchestra; designation; funding. (a) The Hawaii Symphony Orchestra shall be designated the State of Hawaii Symphony Orchestra.

(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 Symphony Orchestra; provided that if the State of Hawaii Symphony Orchestra, 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 designation of the Hawaii Symphony Orchestra as the State of Hawaii Symphony Orchestra shall not impinge on the autonomy of the Hawaii Symphony Orchestra, nor imply state control over its programs or policies, except as specifically provided in this section.

(d) The comptroller and the legislative auditor shall have the authority to examine the use of state funds and shall report any findings to the legislature.

(e) The president and chief executive officer of the Hawaii Symphony Orchestra shall provide an annual report to the legislature no later than twenty days prior to the convening of each regular session. The report shall include, at minimum, an explanation of the operations, maintenance, and other functions accomplished by state fund expenditures in the previous fiscal year."

SECTION 3. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the general operating costs of the State of Hawaii Symphony Orchestra, including:

(1) Operations and maintenance of the organization; and

(2) Advice, consultations, and public statewide services for free, including:

(A) Admission for public school faculty, staff, and students to attend shows through department of education or public charter programs;

(B) Setting standards in the symphony's educational programming and public activities and performances; and

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

SECTION 4. 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 2025-2026 for deposit into the State of Hawaii Endowment Fund.

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

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

THE SENATE	S.B. NO.	441
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII		H.D. 1