RELATING TO THE STATE FOUNDATION ON CULTURE AND THE ARTS.

HB1815

HOUSE OF REPRESENTATIVES

H.B. NO.

1815

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

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:

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

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"
[
[
]�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:

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(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;

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(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;

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(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.

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(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

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(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;

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

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

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(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."

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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.

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(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;

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

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(3)
�
Financial
information regarding the activity or program;

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

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(5)
�
Any
other information the foundation requires."

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2.
�

By amending subsection (e) to read:

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"(e)
�

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

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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."

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

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"
(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:

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"(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."

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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."

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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."

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

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

INTRODUCED BY:

_____________________________

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.