§6E-35  Iolani Palace.  (a)  Theofficial designation of the palace of the former monarchs of Hawaii shall beIolani Palace.

(b)  The official designation of the Friends ofIolani Palace shall be the State of Hawaii Museum of Monarchy History.  Thequalifying standards and conditions related to the receipt of funds underchapter 42F shall not apply to funds received by the State of Hawaii Museum ofMonarchy History; provided that if the museum contracts with a recipient orprovider, then the qualifying standards, conditions, and other provisions ofchapter 42F shall apply to the recipient or provider and the contract.

(c)  To receive state funds, the State ofHawaii Museum of Monarchy History shall:

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

(2)  Comply with all applicable federal and state lawsprohibiting 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 orlobbying activities;

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

(5)  Have bylaws or policies that describe the mannerin which the activities or services for which a grant or subsidy is awardedshall be conducted or provided;

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

(7)  Have a governing board whose members shall haveno material conflict of interest and serve without compensation.

(d)  The comptroller and state auditor shallhave the authority to examine the use of funds appropriated to the State ofHawaii Museum of Monarchy History.

(e)  The State of Hawaii Museum of MonarchyHistory shall provide to the legislature an annual report no later than twentydays prior to the convening of each regular session, which shall include anexplanation of the facility maintenance and other functions accomplished bystate fund expenditures in the previous fiscal year. [L 1976, c 104, pt of §2;am L 2007, c 291, §§2, 3; am L 2008, c 126, §1]