HOUSE OF REPRESENTATIVES |
H.B. NO. |
2297 |
TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the performing arts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to enhance and broaden the purposes of the State of Hawaii endowment fund, which is a separate fund of the Honolulu symphony trust. The legislature finds that the income and capital gains from the endowment fund should also be used for music production, performances, and music education, in addition to the current limited purpose of the production of music by an Oahu-based symphony orchestra.
The Honolulu symphony endowment fund was
created in 1987 to be used to fund the Honolulu symphony operations. In 1988,
the name of the fund was changed to the State of Hawaii endowment fund. In
1995, a portion of the income and capital gains from the fund was transferred
to the state foundation on culture and the arts, to be used for the production
of music by an Oahu-based symphony orchestra as determined by the state
foundation on culture and the arts.
The legislature notes that, to date, the state foundation on culture and
the arts has not played any significant role in the management and
administration of the fund. More importantly, as of December 2010, the
Honolulu symphony society filed for Chapter 7 bankruptcy. Consequently, this
Act also clarifies that the endowment fund shall be administered by the
department of accounting and general services.
SECTION 2. Section 40-88, Hawaii Revised Statutes, is amended to read as follows:
"§40-88 State of Hawaii endowment fund
created. (a) There shall be established [as a separate fund of the
Honolulu symphony trust created by the trust agreement dated December 5, 1986,]
a fund to be known as the State of Hawaii endowment fund. The income and
capital gains from the [$2,000,000 contributed by the State of Hawaii shall
be transferred on a quarterly basis to the state foundation on culture and the
arts, performing and visual arts events private contribution account to] fund
shall be used for the production of music by an Oahu-based symphony
orchestra or for the education of children in school in preparation for the
production of music with instruction by a performer from an Oahu-based symphony
orchestra, including any Oahu-based youth symphony orchestra, as determined
by the state foundation on culture and the arts. The State of Hawaii endowment
fund shall be subject to the restrictions that:
(1) No part of the principal amount contributed to
the fund by the State [or by matching grants] shall be used for
operations of the [Honolulu] Oahu-based symphony[;] orchestra;
provided that in exigent circumstances, as determined by the state foundation
on culture and the arts, the foundation may permit no more than three per cent
of the principal amount to be used, pursuant to rules adopted under chapter 91;
(2) Income and capital gains from the fund shall not
be distributed for use in the operations of the [Honolulu] Oahu-based
symphony orchestra during any period that the value of the fund shall be
less than the principal amounts contributed to the fund[; and];
provided that in exigent circumstances, as determined by the state foundation
on culture and the arts, the foundation may permit no more than three per cent
of income and capital gains from the fund to be used, pursuant to rules adopted
under chapter 91;
(3) The amounts contributed to the fund by the State
shall revert to the State to the extent that [matching or other] conditions
to the grant of the funds are not met[, and the]; and
(4) The fund [also] shall be
subject to additional restrictions as may be imposed with respect to transfers
of funds in future legislation appropriating sums to be contributed to the
fund.
[(b) Matching conditions set forth in
legislation appropriating funds to be contributed to the State of Hawaii
endowment fund, including conditions in previous legislation appropriating sums
for the fund, shall be satisfied to the extent that any of the following shall
be received prior to the date by which the funds are to be matched:
(1) Cash, including the United States
dollar equivalent of foreign currency, on the date of its contribution to the
fund;
(2) Personal property, including securities
and cash value of life insurance policies, and real property transferred to the
symphony, valued by appraisal, market quotations or other generally accepted
valuation methods as of a date on or about the date of contribution of the
property to the fund; and
(3) All portions of pledges that are
payable not later than five full years following the date by which the funds
contributed by the State are to be matched; provided that any sums appropriated
by the State and matched by such pledges within the matching period shall
revert to the general fund to the extent the sums appropriated by the State are
not matched by actual payment of such pledges within the five-year period.
(c)] (b) In the event that any
funds contributed by the State are to revert to the general fund of the State,
pursuant to subsection (a)(3) [or (b)(3),], the amount of the
reversion shall be equal to the principal amount of the funds contributed by
the State [that have not been matched,] for which conditions to the
grant of funds have not been met and no part of any interest, gains, or
other earnings on said principal amount shall revert to the State.
[(d)] (c) The aggregate
principal sum in the fund shall be invested in accordance with the provisions
of the Honolulu symphony trust in a manner intended to maximize the rate of
return on investment of the fund consistent with the objective of preserving
the principal amounts contributed to the fund. In the event of the termination
of the Honolulu symphony trust, the principal amount of all contributions made
by the State to the State of Hawaii endowment fund shall be distributed to the
general fund of the State and any other amounts remaining in the State of
Hawaii endowment fund shall be distributed in accordance with the provisions of
the Honolulu symphony trust. An annual audit by an independent auditor
covering the State of Hawaii endowment fund shall be submitted to the
department of accounting and general services by the [Honolulu] Oahu-based
symphony[.] orchestra."
SECTION 3. Act 97, Session Laws of Hawaii 2006, section 2, as amended by Act 156, Session Laws of Hawaii 2007, section 1, as amended by Act 65, Session Laws of Hawaii 2009, section 1, is amended to read as follows:
"SECTION 2. There is appropriated out of
the general revenues of the State of Hawaii the sum of $4,000,000 or so much
thereof as may be necessary for fiscal year 2006-2007 to be deposited into the
State of Hawaii endowment fund, from which the income and capital gains shall
be used for the production of music by an Oahu-based symphony orchestra[; provided
that the funds appropriated in this section are matched, dollar-for-dollar, by
private funds or pledges pursuant to section 40-88, Hawaii Revised Statutes;
provided further that all pledges or portions of pledges not collected by
February 28, 2013, shall cause any unexpended or unencumbered balance from the
appropriation to revert to the general fund.] or for the education of
children in school in preparation for the production of music with instruction
by a performer from an Oahu-based symphony orchestra, including any Oahu-based
youth symphony orchestra.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2012-2013 for the production of music by an Oahu-based symphony orchestra or for the education of children in school in preparation for the production of music with instruction by a performer from an Oahu-based symphony orchestra, including any Oahu-based youth symphony orchestra.
The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2012.
INTRODUCED BY: |
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Report Title:
Oahu-based Symphony Orchestra; State Foundation on Culture and the Arts
Description:
Allows a portion of the principal as well as the income and capital gains from the State of Hawaii Endowment Fund to be used for the operations of an Oahu-based symphony orchestra during exigent circumstances, as determined by the State Foundation on Culture and the Arts and eliminates matching conditions for those funds. Makes an appropriation for an Oahu-based symphony orchestra. Effective July 1, 2012.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.