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



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



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



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



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



(d)  The Hawaii state library foundation shall
require an annual audit of the trust fund, the results of which shall be
submitted to the department of education not more than thirty days after
receipt by the foundation.  The foundation shall retain for a period of three
years, any documents, papers, books, records, and other evidence that is
pertinent to the trust fund, and permit inspection or access thereto by the
department of education, the state librarian, the department of accounting and
general services, state legislators, and the state auditor, or their duly
authorized representatives.



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