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



(1)  Appropriations by the legislature;



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



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



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



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



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



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



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



(C)  The applicant shall 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;



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



(E)  All activities undertaken with funds
received shall comply with all applicable federal, state, and county statutes
and ordinances;



(F)  The applicant shall indemnify and save
harmless the State of Hawaii and its officers, agents, and employees from and
against any and all claims arising out of or resulting from activities carried
out or projects undertaken with funds provided hereunder, and procure
sufficient insurance to provide this indemnification if requested to do so by
the department;



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



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



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