§312-3.7  Hawaii state library foundationtrust fund.  (a)  There is established as a separate fund of the Hawaiistate library foundation, a Hawaii nonprofit corporation, the Hawaii statelibrary foundation trust fund.  All funds contributed to the trust fund,including income and capital gains earned therefrom, shall be used exclusivelyfor state library programs as defined in the articles, bylaws, resolutions, andother instruments executed on behalf of the Hawaii state library foundation orby the state librarian.  The trust fund may receive any and all types ofprivate contributions, and the income and capital gains earned by the fund;provided that funds or properties donated for library use and patrons' depositsshall be deposited and accounted for in accordance with rules adopted by thecomptroller.  The trust fund shall be subject to the following restrictions:

(1)  All funds, and the income and capital gainsearned by investment of those funds, shall be expended only for the support ofstate library programs; and

(2)  Other restrictions imposed by the legislaturewith respect to the transfer or appropriation of funds.

(b)  Any funds deposited in the trust fund, andany income and capital gains earned therefrom, not used for state libraryprograms, shall be invested in accordance with the provisions of the articles,bylaws, resolutions, or other instruments executed on behalf of the Hawaiistate library foundation, and in a manner intended to maximize the rate ofreturn on investment of the fund.

(c)  If the trust fund is terminated or theHawaii state library foundation is dissolved, all funds, including the incomeand capital gains earned by the investment of funds, shall be distributed inaccordance with the articles and bylaws of the Hawaii state library foundation.

(d)  The Hawaii state library foundation shallrequire an annual audit of the trust fund, the results of which shall besubmitted to the department of education not more than thirty days afterreceipt by the foundation.  The foundation shall retain for a period of threeyears, any documents, papers, books, records, and other evidence that ispertinent to the trust fund, and permit inspection or access thereto by thedepartment of education, the state librarian, the department of accounting andgeneral services, state legislators, and the state auditor, or their dulyauthorized representatives.

(e)  The purpose of this section is to createby statute a private charitable trust fund to financially support state libraryprograms.  The trust fund shall be subject to the terms and conditions providedin this section.  The trust fund shall not be placed in the state treasury andthe State shall not administer the fund nor be liable for its operation orsolvency.  The fund shall be a private charitable trust fund administered by aprivate trust company as trustee. [L 1993, c 328, §1; am L 2000, c 4, §2]