§302A-1502.4  Hawaii 3R'sschool repair and maintenance fund.  (a)  There is established the Hawaii 3R's school repair and maintenance fund (hereinafter, "fund") as aseparate fund of Hawaii 3R's, a Hawaii nonprofit organization.  Moneys receivedfrom the State, county, or federal government, private contributions of cash orother property, and the income and capital gains earned by the fund shallconstitute its assets.

(b)  Hawaii 3R's shall expend moneys from thefund in the form of either grants to organizations or contracts with privatevendors for the repair and maintenance of public schools in Hawaii inaccordance with this section.

(c)  The fund may receive contributions,grants, endowments, or gifts in cash or otherwise from all sources, includingcorporations or other businesses, foundations, government, individuals, andother interested parties.  The legislature intends that public and privatesectors review and investigate all potential funding sources.  The State mayappropriate moneys to the fund; provided that any appropriations made by theState are not intended to supplant the funding of any existing school-levelminor repairs and maintenance programs, including [school-level minor repairand maintenance account] established under section 302A-1504.

(d)  Hawaii 3R's shall appoint the members ofthe Hawaii 3R's school maintenance and repair advisory board, which shall beresponsible for:

(1)  Soliciting and otherwise raising funds for thefund;

(2)  Establishing criteria for the expenditure offunds;

(3)  Reviewing grant proposals using criteriaestablished by Hawaii 3R's; and

(4)  Making recommendations for grants and otherspecific expenditures.

Members of the advisory board shall be stakeholdersin Hawaii's public educational system, including students, parents, alumni,principals, community and business leaders, and representatives from thedepartment of education and the department of accounting and general services,who shall be represented on the advisory board.

(e)  In managing the moneys in the fund, Hawaii 3R's shall exercise ordinary business care and prudence given the facts andcircumstances prevailing at the time of action or decision.  In doing so,Hawaii 3R's shall consider its long- and short-term needs in carrying out itspurposes, its present and anticipated financial requirements, expected totalreturn on its investments, price trends, and general economic conditions.

(f)  There may be an endowment component of thefund, and Hawaii 3R's may accumulate net income and add the same to theprincipal.

(g)  The use of any state moneys may berestricted by the legislation appropriating these moneys to the fund.

(h)  Hawaii 3R's may expend principal from thefund for the purposes of the fund.

(i)  Any organization submitting a proposal to Hawaii 3R's for moneys shall meet the following standards at the time of application:

(1)  Be a for-profit organization duly registeredunder the laws of the State, or be a nonprofit organization determined by theInternal Revenue Service to be exempt from the federal income tax, or be anagency of the State or a county;

(2)  In the case of a nonprofit organization, have agoverning board whose members have no material conflict of interest and servewithout compensation;

(3)  In the case of an applicant that is not a stateor county government agency, have bylaws or policies that describe the mannerin which business is conducted and policies that relate to the management of apotential situation involving a conflict of interest;

(4)  Have experience with the project or in theprogram area for which the proposal is being made; and

(5)  Be licensed and accredited, as applicable, inaccordance with the requirements of federal, state, and county governments.

(j)  All proposals submitted to Hawaii 3R's for moneys shall be approved by the department for consistency in meetingdesign and materials standards for public schools.

(k)  Organizations or agencies to which moneysare awarded shall agree to comply with the following conditions beforereceiving the award:

(1)  Use persons qualified to engage in the activityto be funded;

(2)  Comply with the applicable federal, state, andcounty laws; and

(3)  Comply with any other requirements prescribed by Hawaii 3R's to ensure adherence by the recipient of the award with applicable federal,state, and county laws and with the purposes of this section.

(l)  Chapter 103D shall not apply toorganizations or agencies that apply for grants or contracts under thissection; provided that Hawaii 3R's shall be held accountable for the use of thefunds under a contract with the department.

(m)  Any contract awarded by Hawaii 3R's shallbe made with as much competition as is practical to execute its purposes.

(n)  The fund shall be audited annually by anindependent auditor.  The results of each annual audit shall be submitted tothe department not later than thirty days from the date Hawaii 3R's receivesthe audit results.  In addition, Hawaii 3R's shall retain for a period of threeyears and permit the department, state legislators, and the auditor, or theirduly authorized representatives, to inspect and have access to any documents,papers, books, records and other evidence that is pertinent to the fund.

(o)  The fund shall not be placed in the statetreasury, and the State shall not administer the fund, nor shall the State beliable for the operation or solvency of the fund or Hawaii 3R's.

(p)  For every dollar of state moneys grantedby the fund to the project, there shall be a minimum of $1 in value matched by Hawaii 3R's from private, federal, county, or community service.

(q)  The superintendent of education shallsubmit an annual report of the progress of the Hawaii 3R's school repair andmaintenance fund no later than twenty days prior to the convening of each regularsession of the legislature. [L 2003, c 214, §2; am L 2004, c 51, §54 and c 213,§3]