§210D-11  Grants; conditions andqualifications.  (a)  Grants shall be made for amounts not to exceed$100,000 for each applicant.  Applications for grants shall be made to thedepartment and contain such information as the department shall require by rulesadopted pursuant to chapter 91.  At a minimum, the applicant must show that:

(1)  The grant shall be used exclusively forcommunity-based economic development activities or a community-based businessor enterprise that are consistent with the purposes of this chapter for acontinuous period of at least five years;

(2)  The community-based business or enterprise shallhave applied for or received all applicable licenses and permits;

(3)  The applicant will comply with applicable federaland state laws prohibiting discrimination against any person on the basis ofrace, color, national origin, religion, creed, sex, age, or physical handicap;

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

(5)  The applicant shall comply with otherrequirements as the department of business, economic development, and tourismmay prescribe;

(6)  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;

(7)  The applicant will indemnify and save harmlessthe State of Hawaii and its officers, agents, and employees from and againstany and all claims arising out of or resulting from activities carried out or projectsundertaken with funds provided hereunder, and procure sufficient insurance toprovide this indemnification if requested to do so by the department; and

(8)  The facilities will not be used and are notintended to be used for sectarian instruction or as a place of worship.

(b)  To receive a grant under this section forcommunity-based economic development activities or development of a community-basedenterprise, an applicant shall:

(1)  Be either:

(A)  A profit subsidiary of a nonprofitcommunity-based organization incorporated under the laws of the State;

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

(C)  A cooperative association;

(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 unlessspecifically permitted by the department;

(3)  Agree to make available to the department allrecords the applicant may have relating to the operation of the community-basedenterprise, to allow state agencies to monitor the applicant's compliance withthe purpose of this chapter; and

(4)  Establish, to the satisfaction of the department,that sufficient funds are available for the effective operation of theactivity, business, or enterprise for the purpose for which the grant isawarded. [L 1990, c 111, pt of §2; am L 1991, c 255, §2(2); am L 1996, c 192,§11; am L 2009, c 124, §8]