HB 1815: SFCA; Performing Arts Grants Program; Grants; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions

A BILL FOR AN ACT

RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS.

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

PART I

     SECTION 1.  Chapter 9, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"PART II.  [FOUNDATION] GRANT [PROGRAM] PROGRAMS"

     SECTION 2.  Section 9-11, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-11[]]  Qualifying standards for [foundation] grant applications.  An applicant for a foundation grant or performing arts grants program grant shall meet the following standards:

     (1)  If the applicant is an organization:

          (A)  Be a for-profit organization incorporated under the laws of the State or a nonprofit organization exempt from the federal income tax by the Internal Revenue Service;

          (B)  In the case of a tax exempt nonprofit organization, the organization shall have a governing board whose members have no material conflict of interest and serve without compensation;

          (C)  Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations; and

          (D)  Have at least one year's experience with the project or in the program or activity area for which the request for grant is being made; provided that the foundation may grant an exception where the requesting or proposing organization has demonstrated the necessary experience in the program area[.]; or

     (2)  If the applicant is an individual, the applicant must be determined by the foundation to be:

          (A)  Professionally recognized in the field of culture and the arts or history and the humanities; and

          (B)  Qualified to carry out the activity or program proposed for delivery to the general public or specified members of the general public."

     SECTION 3.  Section 9-12, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-12[]]  Conditions for [foundation] grants.  Applicants to whom a grant, including a performing arts grants program grant, has been awarded shall agree to comply with the following conditions before receiving the grant:

     (1)  Be, employ, or have under contract persons who are qualified to engage in the program or activity to be funded by the State; provided that for nonprofit organizations, no two or more members of a family or kin of the first or second degree shall be employed or under contract by the organization unless specifically permitted in writing by the foundation;

     (2)  Comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

     (3)  Agree not to use public funds for purposes of entertainment or perquisites;

     (4)  Comply with other requirements as the foundation may prescribe to ensure adherence to federal, state, and county laws by the grant recipient; and

     (5)  Allow the foundation, the legislative bodies, and the legislative auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds."

     SECTION 4.  Section 9-13, Hawaii Revised Statutes, is amended as follows:

     1.  By amending its title and subsections (a) and (b) to read:

     "§9-13  Required review of requests for [foundation] grants.  (a)  Every request for a foundation grant or performing arts grants program grant shall be reviewed in accordance with this section.

     (b)  Every request for a foundation grant or performing arts grants program grant shall be submitted to the foundation on an application form provided by the foundation.  Each application shall contain:

     (1)  A statement of the purpose of the activity or program to be funded by the grant;

     (2)  A written description of the activity or program;

     (3)  Financial information regarding the activity or program;

     (4)  If the applicant is an organization, personnel position salaries; and

     (5)  Any other information the foundation requires."

     2.  By amending subsection (e) to read:

     "(e)  The foundation shall inform each foundation grant or performing arts grants program grant applicant of the disposition of the application's request."

     SECTION 5.  Section 9-14, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-14[]]  Allotment.  Appropriations for foundation grants or performing arts grants program grants to be made under this chapter shall be subject to the allotment system generally applicable to all appropriations made by the legislature."

     SECTION 6.  Section 9-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The foundation shall not release the public funds approved for a foundation grant or performing arts grants program grant unless a contract is entered into between the foundation and the recipient of the grant.  The foundation shall develop and determine, in consultation with and subject to the review and approval of the attorney general, the specific contract form to be used."

     SECTION 7.  Section 9-16, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Every foundation grant contract and performing arts grants program grant contract shall be monitored by the foundation to ensure compliance with this part.

     (b)  Every foundation grant contract and performing arts grants program grant contract shall be evaluated annually to determine whether the grant attained the intended results in the manner contemplated."

     SECTION 8.  Section 9-17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-17[]]  Continued eligibility.  Any recipient of a foundation grant or performing arts grants program grant who withholds or omits any material fact or deliberately misrepresents facts to the foundation shall be in violation of this part.  In addition to any other penalties provided by law, any recipient found by the foundation to have violated this part or the terms of its contract shall be prohibited from applying for any foundation grant or performing arts grants program grant for a period of five years from the date of termination."

     SECTION 9.  Section 9-18, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-18[]]  Applicability and interpretation.  This part shall control all foundation grants and performing arts grants program grants made by the foundation.  This part shall be liberally construed so as not to hinder or impede the application, receipt, and use of federal moneys that may become available to the State and the foundation.  If unanticipated federal moneys not included in the legislature's appropriation to the foundation become available, the foundation, pursuant to chapter 29, may apply for, receive, and expend the federal moneys in accordance with the terms and conditions specified in the applicable federal statutes, regulations, or financial award documents."

PART II

     SECTION 10.  Section 8-5, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  There shall be a commission to be known as the King Kamehameha celebration commission placed within the department of [accounting and general services] business, economic development, and tourism for administrative purposes.  The commission shall consist of fifteen members to be appointed by the governor in the manner provided by section 26-34.  The appointments shall be made from the following organizations, with one member from each organization:

     (1)  Royal Order of Kamehameha I;

     (2)  ʻAhahui Kaʻahumanu;

     (3)  Hale O Nā Aliʻi O Hawaiʻi ʻAhahui Poʻo;

     (4)  Daughters and Sons of Hawaiian Warriors Māmakakaua;

     (5)  Kamehameha Schools Alumni Association;

     (6)  Association of Hawaiian Civic Clubs;

     (7)  Waimānalo Hawaiian Homes Association;

     (8)  Daughters of Hawaii;

     (9)  Kapahulu Music Club; and

    (10)  Papakōlea Community Association.

     Each organization shall maintain a certificate of good standing issued by the department of commerce and consumer affairs and an active membership list.  Each organization may recommend for appointment to the commission persons capable of providing administrative guidance to the commission with regard to knowledge of Native Hawaiian culture, history and protocols, legal issues, business, accounting, marketing, philanthropy, or public relations.

     In addition, the governor shall appoint one member to the commission from each of the following islands:  Kauaʻi, Lānaʻi, Maui, Molokaʻi, and Hawaiʻi.  Each of these members shall be a resident of the respective island that the member represents.  The governor shall appoint persons capable of providing administrative guidance with regard to legal issues, business, accounting, marketing, philanthropy, or public relations."

     2.  By amending subsections (c) and (d) to read:

     "(c)  The members of the King Kamehameha celebration commission shall serve without compensation, but shall be entitled to reimbursement for travel and necessary expenses while attending meetings and while in discharge of their duties.  The [comptroller] director of business, economic development, and tourism shall reimburse the members of the King Kamehameha celebration commission for all necessary expenses incurred during the discharge of their duties.

     (d)  The commission may appoint and dismiss an arts program specialist and a part-time clerk typist, without regard to chapter 76, who shall serve at the commission's pleasure, and whose salaries shall be provided through fees, public contributions, and private donations.  The commission, by majority vote, shall appoint an executive director who shall be familiar with the people and culture of [Hawaiʻi,] the State, and shall serve without regard to chapter 76 for a term to be determined by the commission.  Except for matters undertaken by the [comptroller] director of business, economic development, and tourism pursuant to subsection (f), the executive director shall be responsible for all fiscal and administrative matters, including securing public contributions and private foundation grants or donations.  The executive director shall also be responsible for developing and administering programs as the commission may direct.  The executive director may be removed for cause at any time by a two-thirds vote of all commission members."

     3.  By amending subsection (f) to read:

     "(f)  The [comptroller] director of business, economic development, and tourism shall account for all moneys appropriated by the legislature, may raise funds to defray administrative costs, and may accept donations of money and personal property on behalf of the commission; provided that all donations accepted from private sources shall be expended in the manner prescribed by the contributor, and all moneys received from all sources shall be deposited into the commission's trust account."

     SECTION 11.  Section 9-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is hereby created a state foundation on culture and the arts, which shall be placed within the department of [accounting and general services] business, economic development, and tourism for administrative purposes."

     SECTION 12.  Section 9-3, Hawaii Revised Statutes, is amended to read as follows:

     "§9-3  Duties.  The foundation shall:

     (1)  Assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies concerned with the preservation and furtherance of culture and the arts and history and the humanities;

     (2)  Establish written standards and criteria by which grant contracts shall be evaluated;

     (3)  Appraise the availability, adequacy, and accessibility of culture and the arts and history and the humanities to all persons throughout the State and devise programs whereby culture and the arts and history and the humanities can be brought to those who would otherwise not have the opportunity to participate;

     (4)  Stimulate, guide, and promote culture and the arts and history and the humanities throughout the State;

     (5)  Devise and recommend legislative and administrative action for the preservation and furtherance of culture and the arts and history and the humanities;

     (6)  Study the availability of private and governmental grants for the promotion and furtherance of culture and the arts and history and the humanities;

     (7)  Through its executive director:

          (A)  Administer funds allocated by grant, gift, or bequest to the foundation; accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; provided that all those funds shall be disbursed or allocated in compliance with any specific designation stated by the donor and in the absence of any designation, the funds shall be disbursed or allocated for the promotion and furtherance of culture and the arts and history and the humanities; and

          (B)  Accept, hold, disburse, and allocate public funds that are made available to the foundation by the legislature for disbursement or allocation, pursuant to the standards and procedures established in part II, for the promotion and furtherance of culture and the arts and history and the humanities;

     (8)  Submit an annual report with recommendations to the governor and legislature, prior to February 1, of each year.  Annual reports shall include the total number and amount of gifts and other grants and income received, payroll disbursements, contracts entered into, and progress and accomplishments made during the year, including the efforts of the Hawaii arts education partners and its progress in implementing the Hawaii arts education strategic plan and the accomplishments of the art in public places and relocatable works of art programs and the state art museum;

     (9)  Convene the Hawaii arts education partners, which is composed of the department of education, the colleges of education and arts and humanities of the University of Hawaii at Manoa, the Hawaii Association of Independent Schools, and the Hawaii Arts Alliance [for Art Education], to fully implement the terms of the Hawaii arts education strategic plan;

    (10)  Display student art works in public buildings, sponsor student art displays, promote arts education, and in other ways encourage the development of creative talent among the young people of [Hawaii;] the State;

    (11)  In cooperation with qualified organizations, conduct research, studies, and investigations in the fields of ethnohistory and the humanities[:] by:

          (A)  [Make, publish, and distribute] Making, publishing, and distributing works documenting the contributions of individual ethnic groups in their relationship to one another and to the whole population of [Hawaii;] the State;

          (B)  [Place] Placing ethnohistorical and cultural materials developed by the foundation or received by the foundation as gifts and donations in public archives, libraries, and other suitable institutions accessible to the public; and

          (C)  [Maintain] Maintaining a register of the location of [such] the materials;

    (12)  Cooperate with and assist the department of land and natural resources and other state agencies in developing and implementing programs relating to historic preservation, research, restoration, and presentation, as well as museum activities;

    (13)  Establish an individual artist fellowship program to encourage artists to remain and work in [Hawaii] the State and to reaffirm the importance of [Hawaii's] state artists and their cultural and economic contributions to the State by:

          (A)  Recognizing and honoring [Hawaii's] the State's exceptionally talented visual and performing artists for their outstanding work in and commitment to the arts; and

          (B)  Enabling these artists to further their artistic goals;

    (14)  In consultation with the [comptroller] director of business, economic development, and tourism and affected agencies and departments, administer the art in public places and relocatable works of art programs established pursuant to section 103-8.5; and

    (15)  Administer the operations of the state art museum established pursuant to section 9-22."

     SECTION 13.  Section 9-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-5[]]  Rules.  The foundation shall adopt rules in consultation with the [comptroller] director of business, economic development, and tourism for the purposes of administering this chapter.  [Such] The rules shall be adopted in accordance with chapter 91."

     SECTION 14.  Section 26-6, Hawaii Revised Statutes, is amended to read as follows:

     "§26-6  Department of accounting and general services.  (a)  The department of accounting and general services shall be headed by a single executive to be known as the comptroller.

     (b)  The department shall:

     (1)  Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

     (2)  Report to the governor and to each regular session of the legislature as to the finances of each department of the State;

     (3)  Administer the state risk management program;

     (4)  Establish and manage motor pools;

     (5)  Manage the preservation and disposal of all records of the State;

     (6)  Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State;

     (7)  Undertake the functions of the state surveyor;

     (8)  Establish accounting and internal control systems;

     (9)  Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;

    (10)  Provide centralized computer information management and processing services through the chief information officer;

    (11)  Establish a program to provide a means for public access to public information and develop an information network for state government;

    (12)  Assume administrative responsibility for the office of information practices; and

    (13)  Approve state fleet acquisitions; provided that:

          (A)  Beginning January 1, 2022, all new light-duty motor vehicles that are passenger cars purchased for the State's fleet shall be zero-emission vehicles;

          (B)  Beginning as soon as practicable but no later than January 1, 2030, all new light-duty motor vehicles that are multipurpose passenger vehicles and trucks for the State's fleet shall be zero-emission vehicles; and

          (C)  The comptroller may authorize an exemption for new fleet vehicle purchases if zero-emission vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicles' planned purpose, or if funds are unavailable.

     For the purposes of this subsection:

     "Light-duty motor vehicle" has the same meaning as defined in title 10 Code of Federal Regulations part 490.

     "Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

     "Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

     "Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

     "Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1.

     (c)  The state communication system shall be established to:

     (1)  Facilitate implementation of the State's distributed information processing and information resource management plans;

     (2)  Improve data, voice, and video communications in state government;

     (3)  Provide a means for connectivity among the state, university, and county computer systems; and

     (4)  Provide a long-term means for public access to public information.

     (d)  The department shall establish, coordinate, and manage a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding facilities managed or controlled by the department of transportation, to private investors; provided that each facility agreement contains the following requirements:

     (1)  The State shall sell the facility to the private investor, who shall:

          (A)  Renovate, improve, or construct a facility for the State and may maintain the facility; and

          (B)  Lease the facility to the State, pursuant to a building lease;

     (2)  The land upon which the facility rests shall not be sold to the private investor; provided that the land may be leased at a nominal rate to the private investor for a term that would, at a minimum, allow the private investor to recover the capital investment that has been made to the facility, including depreciation; and

     (3)  The State shall have the option of purchasing the facility from the private investor for the remaining balance of the debt service costs incurred by the private investor at any time.

     For purposes of this subsection:

     "Building lease" means a contract between the department of accounting and general services and a private investor in which the private investor leases an improved facility to the department for a specified period of time.

     "Facility" means a building under the management and control of any state department.

     "Facility agreement" means an agreement between the State and a private investor that, at a minimum, includes a description of the work to be done, the sale price for the facility, the duration of the agreement, the roles and responsibilities of the State and the private investor, and the terms and conditions for the lease.

     "Private investor" means a nongovernmental entity.

     (e)  The department may adopt rules as may be necessary or desirable for the operation and maintenance of public buildings; for the operation and implementation of a program to provide a means for public access to the State's information network system and public information; and for the implementation of facility agreements pursuant to subsection (d).  The rules shall be adopted pursuant to chapter 91.

     [(f)  The King Kamehameha celebration commission shall be placed within the department of accounting and general services for administrative purposes.  The functions, duties, and powers, subject to the administrative control of the comptroller, and the composition of the commission shall be as heretofore provided by law.

     (g)] (f)  The functions and authority [heretofore] exercised by the comptroller, board of commissioners of public archives, the archivist, the disposal committee, and the insurance management, surplus property management, and central purchasing functions of the bureau of the budget and the nonhighway functions of the department of public works as [heretofore] constituted [are] shall be transferred to the department of accounting and general services established by this chapter.

     [(h)] (g)  The department of accounting and general services shall preserve and protect Washington Place, including the grounds and the historic residence situated on its premises at Miller and Beretania Streets in Honolulu.  The department shall administer, manage, operate, and maintain Washington Place and the trust fund created under subsection [(i).] (h).

     [(i)] (h)  There is established a trust fund in the state treasury to be known as the Washington Place trust fund, into which shall be deposited:

     (1)  All rents and fees collected for the use of Washington Place and from activities conducted on the premises;

     (2)  All other money received for the fund from any other source; and

     (3)  All income and interest earned or accrued on moneys deposited into the trust fund.

     All moneys deposited into the trust fund shall be expended by the department of accounting and general services and used exclusively to implement the provisions of subsection [(h),] (g), including for staff salaries and fringe benefits, and shall not be transferred, nor subject to transfer, to the general fund or any other fund in the state treasury."

     SECTION 15.  Section 103-8.5, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsections (c) through (e) to read:

     "(c)  The one per cent amount, which is included in all general obligation bond fund capital improvement appropriations, shall be calculated at the time that each appropriation becomes available.  The [comptroller] director of business, economic development, and tourism shall cause one per cent of each general obligation bond fund capital improvement appropriation designated for the construction or renovation of state buildings to be transferred into a general obligation bond fund appropriation the legislature may make specifically for deposits to the works of art special fund after availability of moneys from the appropriations.  Each agency receiving capital improvement appropriations shall calculate the one per cent amount and transfer the appropriation into a general obligation bond fund appropriation the legislature may make specifically for deposits to the works of art special fund.

     (d)  The [comptroller] director of business, economic development, and tourism and the state foundation on culture and the arts shall decide on the specific art objects to acquire, giving first consideration to placing appropriate pieces of art at the locations of the original appropriation.

     [The] Notwithstanding any law to the contrary, selection of, commissioning artists for, reviewing of design, execution, and placement of, and the acceptance of works of art shall be the responsibility of the [comptroller] director of business, economic development, and tourism and the state foundation on culture and the arts in consultation with the affected agency or department.

     Expenditures from the works of art special fund shall be made by the [comptroller.] director of business, economic development, and tourism.

     (e)  The [comptroller] director of business, economic development, and tourism shall:

     (1)  Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount;

     (2)  Ensure that each agency calculates its one per cent amount correctly;

     (3)  Ensure that each agency transfers the correct amount of each appropriation to a separate appropriation made for deposits to the works of art special fund; and

     (4)  Transfer to the works of art special fund the annual transfer amount, as defined in subsection (i), from an appropriation the legislature may make for deposits to the works of art special fund."

     2.  By amending subsection (h) to read:

     "(h)  The [comptroller] director of business, economic development, and tourism and the executive director of the state foundation on culture and the arts shall track amounts transferred to the works of art special fund, the use of all transferred amounts, and the timing of the use of all transferred amounts by appropriation and date of transfer."

     SECTION 16.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

     SECTION 17.  All rights, powers, functions, and duties of the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

     All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

     No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and the officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

     If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

     SECTION 18.  All rules, policies, procedures, guidelines, and other material adopted or developed by the department of accounting and general services to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.

     In the interim, every reference to the department of accounting and general services or comptroller in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.

     SECTION 19.  All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of accounting and general services, pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect.  Upon the effective date of this Act, every reference to the department of accounting and general services or the comptroller therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.

     SECTION 20.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of accounting and general services relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

PART III

     SECTION 21.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 22.  This Act shall take effect on July 1, 2026.

Report Title:

SFCA; Performing Arts Grants Program; Grants; King Kamehameha Celebration Commission; DAGS; DBEDT; Comptroller; Works of Art Special Fund; Transfer; Positions

Description:

Part I:  Explicitly applies existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.  Part II:  Transfers the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism.  Transfers certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism.  (CD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS.

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

     SECTION 1.  Chapter 9, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"PART II.  [FOUNDATION] GRANT [PROGRAM] PROGRAMS"

     SECTION 2.  Section 9-11, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-11[]]  Qualifying standards for [foundation] grant applications.  An applicant for a foundation grant or performing arts grants program grant shall meet the following standards:

     (1)  If the applicant is an organization:

          (A)  Be a for-profit organization incorporated under the laws of the State or a nonprofit organization exempt from the federal income tax by the Internal Revenue Service;

          (B)  In the case of a tax exempt nonprofit organization, the organization shall have a governing board whose members have no material conflict of interest and serve without compensation;

          (C)  Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations; and

          (D)  Have at least one year's experience with the project or in the program or activity area for which the request for grant is being made; provided that the foundation may grant an exception where the requesting or proposing organization has demonstrated the necessary experience in the program area[.]; or

     (2)  If the applicant is an individual, the applicant must be determined by the foundation to be:

          (A)  Professionally recognized in the field of culture and the arts or history and the humanities; and

          (B)  Qualified to carry out the activity or program proposed for delivery to the general public or specified members of the general public."

     SECTION 3.  Section 9-12, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-12[]]  Conditions for [foundation] grants.  Applicants to whom a grant, including a performing arts grants program grant, has been awarded shall agree to comply with the following conditions before receiving the grant:

     (1)  Be, employ, or have under contract persons who are qualified to engage in the program or activity to be funded by the State; provided that for nonprofit organizations, no two or more members of a family or kin of the first or second degree shall be employed or under contract by the organization unless specifically permitted in writing by the foundation;

     (2)  Comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

     (3)  Agree not to use public funds for purposes of entertainment or perquisites;

     (4)  Comply with other requirements as the foundation may prescribe to ensure adherence to federal, state, and county laws by the grant recipient; and

     (5)  Allow the foundation, the legislative bodies, and the legislative auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds."

     SECTION 4.  Section 9-13, Hawaii Revised Statutes, is amended as follows:

     1.  By amending its title and subsections (a) and (b) to read:

     "§9-13  Required review of requests for [foundation] grants.  (a)  Every request for a foundation grant or performing arts grants program grant shall be reviewed in accordance with this section.

     (b)  Every request for a foundation grant or performing arts grants program grant shall be submitted to the foundation on an application form provided by the foundation.  Each application shall contain:

     (1)  A statement of the purpose of the activity or program to be funded by the grant;

     (2)  A written description of the activity or program;

     (3)  Financial information regarding the activity or program;

     (4)  If the applicant is an organization, personnel position salaries; and

     (5)  Any other information the foundation requires."

     2.  By amending subsection (e) to read:

     "(e)  The foundation shall inform each foundation grant or performing arts grants program grant applicant of the disposition of the application's request."

     SECTION 5.  Section 9-14, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-14[]]  Allotment.  Appropriations for foundation grants or performing arts grants program grants to be made under this chapter shall be subject to the allotment system generally applicable to all appropriations made by the legislature."

     SECTION 6.  Section 9-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The foundation shall not release the public funds approved for a foundation grant or performing arts grants program grant unless a contract is entered into between the foundation and the recipient of the grant.  The foundation shall develop and determine, in consultation with and subject to the review and approval of the attorney general, the specific contract form to be used."

     SECTION 7.  Section 9-16, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Every foundation grant contract and performing arts grants program grant contract shall be monitored by the foundation to ensure compliance with this part.

     (b)  Every foundation grant contract and performing arts grants program grant contract shall be evaluated annually to determine whether the grant attained the intended results in the manner contemplated."

     SECTION 8.  Section 9-17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-17[]]  Continued eligibility.  Any recipient of a foundation grant or performing arts grants program grant who withholds or omits any material fact or deliberately misrepresents facts to the foundation shall be in violation of this part.  In addition to any other penalties provided by law, any recipient found by the foundation to have violated this part or the terms of its contract shall be prohibited from applying for any foundation grant or performing arts grants program grant for a period of five years from the date of termination."

     SECTION 9.  Section 9-18, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-18[]]  Applicability and interpretation.  This part shall control all foundation grants and performing arts grants program grants made by the foundation.  This part shall be liberally construed so as not to hinder or impede the application, receipt, and use of federal moneys that may become available to the State and the foundation.  If unanticipated federal moneys not included in the legislature's appropriation to the foundation become available, the foundation, pursuant to chapter 29, may apply for, receive, and expend the federal moneys in accordance with the terms and conditions specified in the applicable federal statutes, regulations, or financial award documents."

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on July 13, 2085.

Report Title:

SFCA; Performing Arts Grants Program; Grants

Description:

Explicitly applies existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.  Effective 7/13/2085.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS.

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

     SECTION 1.  Chapter 9, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"PART II.  [FOUNDATION] GRANT [PROGRAM] PROGRAMS"

     SECTION 2.  Section 9-11, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-11[]]  Qualifying standards for [foundation] grant applications.  An applicant for a foundation grant or performing arts grants program grant shall meet the following standards:

     (1)  If the applicant is an organization:

          (A)  Be a for-profit organization incorporated under the laws of the State or a nonprofit organization exempt from the federal income tax by the Internal Revenue Service;

          (B)  In the case of a tax exempt nonprofit organization, the organization shall have a governing board whose members have no material conflict of interest and serve without compensation;

          (C)  Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations; and

          (D)  Have at least one year's experience with the project or in the program or activity area for which the request for grant is being made; provided that the foundation may grant an exception where the requesting or proposing organization has demonstrated the necessary experience in the program area[.]; or

     (2)  If the applicant is an individual, the applicant must be determined by the foundation to be:

          (A)  Professionally recognized in the field of culture and the arts or history and the humanities; and

          (B)  Qualified to carry out the activity or program proposed for delivery to the general public or specified members of the general public."

     SECTION 3.  Section 9-12, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-12[]]  Conditions for [foundation] grants.  Applicants to whom a grant, including a performing arts grants program grant, has been awarded shall agree to comply with the following conditions before receiving the grant:

     (1)  Be, employ, or have under contract persons who are qualified to engage in the program or activity to be funded by the State; provided that for nonprofit organizations, no two or more members of a family or kin of the first or second degree shall be employed or under contract by the organization unless specifically permitted in writing by the foundation;

     (2)  Comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

     (3)  Agree not to use public funds for purposes of entertainment or perquisites;

     (4)  Comply with other requirements as the foundation may prescribe to ensure adherence to federal, state, and county laws by the grant recipient; and

     (5)  Allow the foundation, the legislative bodies, and the legislative auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds."

     SECTION 4.  Section 9-13, Hawaii Revised Statutes, is amended as follows:

     1.  By amending its title and subsections (a) and (b) to read:

     "§9-13  Required review of requests for [foundation] grants.  (a)  Every request for a foundation grant or performing arts grants program grant shall be reviewed in accordance with this section.

     (b)  Every request for a foundation grant or performing arts grants program grant shall be submitted to the foundation on an application form provided by the foundation.  Each application shall contain:

     (1)  A statement of the purpose of the activity or program to be funded by the grant;

     (2)  A written description of the activity or program;

     (3)  Financial information regarding the activity or program;

     (4)  If the applicant is an organization, personnel position salaries; and

     (5)  Any other information the foundation requires."

     2.  By amending subsection (e) to read:

     "(e)  The foundation shall inform each foundation grant or performing arts grants program grant applicant of the disposition of the application's request."

     SECTION 5.  Section 9-14, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-14[]]  Allotment.  Appropriations for foundation grants or performing arts grants program grants to be made under this chapter shall be subject to the allotment system generally applicable to all appropriations made by the legislature."

     SECTION 6.  Section 9-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The foundation shall not release the public funds approved for a foundation grant or performing arts grants program grant unless a contract is entered into between the foundation and the recipient of the grant.  The foundation shall develop and determine, in consultation with and subject to the review and approval of the attorney general, the specific contract form to be used."

     SECTION 7.  Section 9-16, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Every foundation grant contract and performing arts grants program grant contract shall be monitored by the foundation to ensure compliance with this part.

     (b)  Every foundation grant contract and performing arts grants program grant contract shall be evaluated annually to determine whether the grant attained the intended results in the manner contemplated."

     SECTION 8.  Section 9-17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-17[]]  Continued eligibility.  Any recipient of a foundation grant or performing arts grants program grant who withholds or omits any material fact or deliberately misrepresents facts to the foundation shall be in violation of this part.  In addition to any other penalties provided by law, any recipient found by the foundation to have violated this part or the terms of its contract shall be prohibited from applying for any foundation grant or performing arts grants program grant for a period of five years from the date of termination."

     SECTION 9.  Section 9-18, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-18[]]  Applicability and interpretation.  This part shall control all foundation grants and performing arts grants program grants made by the foundation.  This part shall be liberally construed so as not to hinder or impede the application, receipt, and use of federal moneys that may become available to the State and the foundation.  If unanticipated federal moneys not included in the legislature's appropriation to the foundation become available, the foundation, pursuant to chapter 29, may apply for, receive, and expend the federal moneys in accordance with the terms and conditions specified in the applicable federal statutes, regulations, or financial award documents."

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on July 1, 3000.

Report Title:

SFCA; Performing Arts Grants Program; Grants

Description:

Explicitly applies existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to the state foundation on culture and the arts.

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

     SECTION 1.  Section 9-11, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-11[]]  Qualifying standards for [foundation] grant applications.  An applicant for a foundation grant or performing arts grants program grant shall meet the following standards:

     (1)  If the applicant is an organization:

          (A)  Be a for-profit organization incorporated under the laws of the State or a nonprofit organization exempt from the federal income tax by the Internal Revenue Service;

          (B)  In the case of a tax exempt nonprofit organization, the organization shall have a governing board whose members have no material conflict of interest and serve without compensation;

          (C)  Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations; and

          (D)  Have at least one year's experience with the project or in the program or activity area for which the request for grant is being made; provided that the foundation may grant an exception where the requesting or proposing organization has demonstrated the necessary experience in the program area.

     (2)  If the applicant is an individual, the applicant must be determined by the foundation to be:

          (A)  Professionally recognized in the field of culture and the arts or history and the humanities; and

          (B)  Qualified to carry out the activity or program proposed for delivery to the general public or specified members of the general public."

     SECTION 2.  Section 9-12, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-12[]]  Conditions for [foundation] grants.  Applicants to whom a grant, including a performing arts grants program grant, has been awarded shall agree to comply with the following conditions before receiving the grant:

     (1)  Be, employ, or have under contract persons who are qualified to engage in the program or activity to be funded by the State; provided that for nonprofit organizations, no two or more members of a family or kin of the first or second degree shall be employed or under contract by the organization unless specifically permitted in writing by the foundation;

     (2)  Comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;

     (3)  Agree not to use public funds for purposes of entertainment or perquisites;

     (4)  Comply with other requirements as the foundation may prescribe to ensure adherence to federal, state, and county laws by the grant recipient; and

     (5)  Allow the foundation, the legislative bodies, and the legislative auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds."

     SECTION 3.  Section 9-13, Hawaii Revised Statutes, is amended as follows:

     1.  By amending its title and subsections (a) and (b) to read:

     "§9-13  Required review of requests for [foundation] grants.  (a)  Every request for a foundation grant or performing arts grants program grant shall be reviewed in accordance with this section.

     (b)  Every request for a foundation grant or performing arts grants program grant shall be submitted to the foundation on an application form provided by the foundation.  Each application shall contain:

     (1)  A statement of the purpose of the activity or program to be funded by the grant;

     (2)  A written description of the activity or program;

     (3)  Financial information regarding the activity or program;

     (4)  If the applicant is an organization, personnel position salaries; and

     (5)  Any other information the foundation requires."

     2.  By amending subsection (e) to read:

     "(e)  The foundation shall inform each foundation grant or performing arts grants program grant applicant of the disposition of the application's request."

     SECTION 4.  Section 9-14, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-14[]]  Allotment.  Appropriations for foundation grants or performing arts grants program grants to be made under this chapter shall be subject to the allotment system generally applicable to all appropriations made by the legislature."

     SECTION 5.  Section 9-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The foundation shall not release the public funds approved for a foundation grant or performing arts grants program grant unless a contract is entered into between the foundation and the recipient of the grant.  The foundation shall develop and determine, in consultation with and subject to the review and approval of the attorney general, the specific contract form to be used."

     SECTION 6.  Section 9-16, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  Every foundation grant contract or performing arts grants program grant contract shall be monitored by the foundation to ensure compliance with this part.

     (b)  Every foundation grant and performing arts grants program grant contract shall be evaluated annually to determine whether the grant attained the intended results in the manner contemplated."

     SECTION 7.  Section 9-17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-17[]]  Continued eligibility.  Any recipient of a foundation grant or performing arts grants program grant who withholds or omits any material fact or deliberately misrepresents facts to the foundation shall be in violation of this part.  In addition to any other penalties provided by law, any recipient found by the foundation to have violated this part or the terms of its contract shall be prohibited from applying for any foundation grant for a period of five years from the date of termination."

     SECTION 8.  Section 9-18, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§9-18[]]  Applicability and interpretation.  This part shall control all foundation grants and performing arts grants program grants made by the foundation.  This part shall be liberally construed so as not to hinder or impede the application, receipt, and use of federal moneys that may become available to the State and the foundation.  If unanticipated federal moneys not included in the legislature's appropriation to the foundation become available, the foundation, pursuant to chapter 29, may apply for, receive, and expend the federal moneys in accordance with the terms and conditions specified in the applicable federal statutes, regulations, or financial award documents."

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect upon its approval.

Report Title:

SFCA; Performing Arts Grants Program; Grants

Description:

Explicitly applies existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  767-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1815

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 1815, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS,"

begs leave to report as follows:

     The purpose of this measure is to explicitly apply existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.

     Your Committee received testimony in support of this measure from the Hawaiʻi State Foundation on Culture and the Arts; Hawaiʻi Arts Alliance; Pacific Academy of Music; and five individuals.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1815, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  34-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1815

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Culture & Arts, to which was referred H.B. No. 1815 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS,"

begs leave to report as follows:

     The purpose of this measure is to explicitly apply existing grant standards to Performing Arts Grants Program grants under the State Foundation on Culture and the Arts.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and State Foundation on Culture and the Arts.

     Your Committee finds that while the State Foundation on Culture and the Arts administers various grants that support Hawaii's cultural and artistic programming, statutory language has not clearly extended existing grant standards to the Performing Arts Grants Program.  This lack of clarity may create confusion regarding eligibility, application procedures, and oversight.  This measure explicitly applies the same qualifying, contracting, and monitoring requirements to performing arts grants as are required for other grants under the State Foundation on Culture and the Arts, reinforcing uniform procedures and strengthening oversight across all grant programs administered by the Foundation.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Culture & Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1815, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1815, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Culture & Arts,