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



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



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



(3)  The applicant will 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;



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



(5)  The applicant shall comply with other
requirements as the department of business, economic development, and tourism
may prescribe;



(6)  All activities and improvements undertaken with
funds received shall comply with all applicable federal, state, and county
statutes and ordinances, including applicable building codes and agency rules;



(7)  The applicant will 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; and



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



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



(1)  Be either:



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



(B)  A nonprofit community-based organization
determined to be exempt from federal income taxation by the Internal Revenue
Service; or



(C)  A cooperative association;



(2)  In the case of a nonprofit organization, have a
governing board whose members have no material conflict of interest and serve
without compensation, have bylaws or policies that describe the manner in which
business is conducted and policies relating to nepotism and management of
potential conflict of interest situations, and employ or contract with no two
or more members of a family or kin of the first or second degree unless
specifically permitted by the department;



(3)  Agree to make available to the department all
records the applicant may have relating to the operation of the community-based
enterprise, to allow state agencies to monitor the applicant's compliance with
the purpose of this chapter; and



(4)  Establish, to the satisfaction of the department,
that sufficient funds are available for the effective operation of the
activity, business, or enterprise for the purpose for which the grant is
awarded. [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]