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

(b)  The Hawaii alliance for future teachersshall expend moneys from the fund in the form of either grants to organizationsor contracts with private vendors to provide programs for students who possessa high level of academic achievement and the personality traits found in goodteachers 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, 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.

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

(1)  Soliciting and otherwise raising funds for thefund;

(2)  Establishing criteria for the expenditure offunds;

(3)  Reviewing grant proposals using criteriaestablished by Hawaii alliance for future teachers; 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 the departmentof education and the department of accounting and general services, who shallbe represented on the advisory board.

(e)  In managing the moneys in the fund, theHawaii alliance for future teachers shall exercise ordinary business care andprudence given the facts and circumstances prevailing at the time of action ordecision.  In doing so, the Hawaii alliance for future teachers shall considerits long- and short-term needs in carrying out its purposes, its present andanticipated financial requirements, expected total return on its investments,price trends, and general economic conditions.

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

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

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

(i)  Any organization submitting a proposal tothe Hawaii alliance for future teachers for moneys shall meet the followingstandards 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 the Hawaiialliance for future teachers for moneys shall be approved by the department forconsistency in meeting 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 bythe Hawaii alliance for future teachers to ensure adherence by the recipient ofthe award with applicable federal, state, and county laws and with the purposesof this section.

(l)  Chapter 103D shall not apply toorganizations or agencies that apply for grants or contracts under thissection; provided that the Hawaii alliance for future teachers shall be heldaccountable for the use of the funds under a contract with the department.

(m)  Any contract awarded by the Hawaiialliance for future teachers shall be made with as much competition as ispractical 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 the  Hawaii alliancefor future teachers receives the audit results.  In addition, the Hawaiialliance for future teachers shall retain for a period of three years andpermit the department, state legislators, and the auditor, or their dulyauthorized 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 of the  Hawaii alliance forfuture teachers.

(p)  For every dollar of state moneys grantedby the fund to the project, there shall be a minimum of $1 in value matched bythe Hawaii alliance for future teachers in cash, or the fair market value ofin-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 shallsubmit an annual report of the progress of the Hawaii teacher cadet programfund no later than twenty days prior to the convening of each regular sessionof the legislature. [L 2005, c 159, §2]