[§302A-401.5]  Hawaii teacher
cadet program fund.  (a)  There is established the Hawaii teacher cadet
program fund as a separate fund of the Hawaii alliance for future teachers, a
Hawaii nonprofit organization.  Moneys received from the state, county, or federal
government, private contributions of cash or other property, and the income and
capital gains earned by the fund shall constitute its assets.



(b)  The Hawaii alliance for future teachers
shall expend moneys from the fund in the form of either grants to organizations
or contracts with private vendors to provide programs for students who possess
a high level of academic achievement and the personality traits found in good
teachers to consider teaching as a career in accordance with this section.



(c)  The fund may receive contributions,
grants, endowments, or gifts in cash or otherwise from all sources, including
corporations or other businesses, foundations, government, individuals, and
other interested parties.  The legislature intends that public and private
sectors review and investigate all potential funding sources.  The State may
appropriate moneys to the fund.



(d)  The Hawaii alliance for future teachers
shall appoint the members of the Hawaii teacher cadet program advisory board,
which shall be responsible for:



(1)  Soliciting and otherwise raising funds for the
fund;



(2)  Establishing criteria for the expenditure of
funds;



(3)  Reviewing grant proposals using criteria
established by Hawaii alliance for future teachers; and



(4)  Making recommendations for grants and other
specific expenditures.



Members of the advisory board shall be stakeholders
in Hawaii's public educational system, including students, parents, alumni,
principals, community and business leaders, and representatives from the department
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, the
Hawaii alliance for future teachers shall exercise ordinary business care and
prudence given the facts and circumstances prevailing at the time of action or
decision.  In doing so, the Hawaii alliance for future teachers shall consider
its long- and short-term needs in carrying out its purposes, its present and
anticipated financial requirements, expected total return on its investments,
price trends, and general economic conditions.



(f)  There may be an endowment component of the
fund, and the Hawaii alliance for future teachers may accumulate net income and
add the same to the principal.



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



(h)  The Hawaii alliance for future teachers
may expend principal from the fund for the purposes of the fund.



(i)  Any organization submitting a proposal to
the Hawaii alliance for future teachers for moneys shall meet the following
standards at the time of application:



(1)  Be a for-profit organization duly registered
under the laws of the State, or be a nonprofit organization determined by the
Internal Revenue Service to be exempt from the federal income tax, or be an
agency of the State or a county;



(2)  In the case of a nonprofit organization, have a
governing board whose members have no material conflict of interest and serve
without compensation;



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



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



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



(j)  All proposals submitted to the Hawaii
alliance for future teachers for moneys shall be approved by the department for
consistency in meeting standards for public schools.



(k)  Organizations or agencies to which moneys
are awarded shall agree to comply with the following conditions before
receiving the award:



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



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



(3)  Comply with any other requirements prescribed by
the Hawaii alliance for future teachers 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 to
organizations or agencies that apply for grants or contracts under this
section; provided that the Hawaii alliance for future teachers shall be held
accountable for the use of the funds under a contract with the department.



(m)  Any contract awarded by the Hawaii
alliance for future teachers shall be made with as much competition as is
practical to execute its purposes.



(n)  The fund shall be audited annually by an
independent auditor.  The results of each annual audit shall be submitted to
the department not later than thirty days from the date the  Hawaii alliance
for future teachers receives the audit results.  In addition, the Hawaii
alliance for future teachers shall retain for a period of three years and
permit the department, state legislators, and the auditor, or their duly
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 state
treasury, and the State shall not administer the fund, nor shall the State be
liable for the operation or solvency of the fund of the  Hawaii alliance for
future teachers.



(p)  For every dollar of state moneys granted
by the fund to the project, there shall be a minimum of $1 in value matched by
the Hawaii alliance for future teachers in cash, or the fair market value of
in-kind donations, real property, or any other item of value from federal,
state, or county governments, private entities, community-based organizations,
non-profit organizations, or individuals.



(q)  The superintendent of education shall
submit an annual report of the progress of the Hawaii teacher cadet program
fund no later than twenty days prior to the convening of each regular session
of the legislature. [L 2005, c 159, §2]