[§201-113]  Hawaii television and filmdevelopment special fund.  (a)  There is established in the state treasurythe Hawaii television and film development special fund into which shall bedeposited:

(1)  Appropriations by the legislature;

(2)  Donations and contributions made by privateindividuals or organizations for deposit into the fund;

(3)  Grants provided by governmental agencies or anyother source; and

(4)  Any profits or other amounts received fromventure capital investments.

(b)  The fund shall be used by the board toassist in, and provide incentives for, the production of eligible Hawaiiprojects that are in compliance with criteria and standards established by theboard in accordance with rules adopted by the board pursuant to chapter 91.  Inparticular, the board shall adopt rules to provide for the implementation ofthe following programs:

(1)  A grant program.  The board shall adopt rulespursuant to chapter 91 to provide conditions and qualifications for grants. Applications for grants shall be made to the board and shall contain suchinformation as the board shall require by rules adopted pursuant to chapter91.  At a minimum, the applicant shall agree to the following conditions:

(A)  The grant shall be used exclusively foreligible Hawaii projects;

(B)  The applicant shall have applied for orreceived all applicable licenses and permits;

(C)  The applicant shall comply with applicablefederal and state laws prohibiting discrimination against any person on thebasis of race, color, national origin, religion, creed, sex, age, or physicalhandicap;

(D)  The applicant shall comply with otherrequirements as the board may prescribe;

(E)  All activities undertaken with fundsreceived shall comply with all applicable federal, state, and county statutesand ordinances;

(F)  The applicant shall indemnify and saveharmless the State of Hawaii and 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 department;

(G)  The applicant shall make available to theboard all records the applicant may have relating to the project, to allow theboard to monitor the applicant's compliance with the purpose of this chapter;and

(H)  The applicant, to the satisfaction of theboard, shall establish that sufficient funds are available for the completionof the project for the purpose for which the grant is awarded; and

(2)  A venture capital program.  The board shall adoptrules pursuant to chapter 91 to provide conditions and qualifications forventure capital investments in eligible Hawaii projects.  The program mayinclude a written agreement between the borrower and the board, as therepresentative of the State, that as consideration for the venture capitalinvestment made under this part, the borrower shall share any royalties,licenses, titles, rights, or any other monetary benefits that may accrue to theborrower pursuant to terms and conditions established by the board by rulepursuant to chapter 91.  Venture capital investments may be made on such termsand conditions as the board shall determine to be reasonable, appropriate, andconsistent with the purposes and objectives of this part. [L 2000, c 285, pt of§2]