§10-17  Grants; conditions andqualifications.  (a)  Applications for grants shall be made to the officeand contain such information as the office shall require.  At a minimum, theapplicant shall show:

(1)  The name of the requesting organization or individual;

(2)  The purpose for the grant;

(3)  The service to be supported by the grant;

(4)  The target group to be benefited;

(5)  The cost of the grant; and

(6)  That the grant shall be used for activities thatare consistent with the purposes of this chapter.

(b)  Grants shall only be awarded if:

(1)  The applicant has applied for or received allapplicable licenses and permits, when such is required to conduct theactivities or provide the services for which a grant is awarded;

(2)  The applicant agrees to comply with applicablefederal, state, and county laws;

(3)  The grant shall not be used for purposes ofentertainment or perquisites;

(4)  All activities and improvements undertaken withfunds received shall comply with all applicable federal, state, and countystatutes and ordinances, including applicable building codes and agency rules;and

(5)  The applicant will indemnify and hold harmlessthe office, the State of Hawaii, its officers, agents, and employees from andagainst any and all claims arising out of or resulting from activities carriedout or projects undertaken with funds provided hereunder, and procuresufficient insurance to provide this indemnification if requested to do so bythe office.

(c)  To receive a grant, an applicant shall:

(1)  Be:

(A)  A for-profit subsidiary of a nonprofitorganization incorporated under the law of the State;

(B)  A nonprofit community-based organizationdetermined to be exempt from federal income taxation by the Internal RevenueService;

(C)  A cooperative association; or

(D)  An individual, who in the board'sdetermination, is able to provide the services or activities proposed in theapplication for a grant;

(2)  In the case of a nonprofit organization, have agoverning board whose members have no material conflict of interest and servewithout compensation, have bylaws or policies that describe the manner in whichbusiness is conducted and policies relating to nepotism and management ofpotential conflict of interest situations, and employ or contract with no twoor more members of a family or kin of the first or second degree ofconsanguinity unless specifically permitted by the office;

(3)  Agree to make available to the office all recordsthe applicant may have relating to the operation of the applicant's activity,business, or enterprise, to allow the office to monitor the applicant'scompliance with the purpose of this chapter; and

(4)  Establish, to the satisfaction of the office,that sufficient funds are available for the effective operation of theactivity, business, or enterprise for the purpose for which the grant isawarded.

(d)  Every grant shall be:

(1)  Monitored by the office to ensure compliance withthis chapter and the purposes and intent of the grant; and

(2)  Evaluated annually to determine whether the grantattained the intended results in the manner contemplated.

(e)  Grants made by the office under thischapter may be made without regard to chapters 103D and 103F. [L 2002, c 182,§1; am L 2003, c 9, §2]