HOUSE OF REPRESENTATIVES

H.B. NO.

277

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO MILITARY AFFAIRS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the presence of the United States military in Hawaii contributes to maintaining the peace and stability of the Asia-Pacific region.  Further, Hawaii's economy benefits from this presence in that the military expends approximately $5,600,000,000 annually in Hawaii and provides employment opportunities to approximately one hundred twenty-five thousand residents.  Next to tourism, military expenditures are currently the largest source of revenues for Hawaii's economy.

     The purpose of this Act is to establish a military affairs liaison trust fund to support a nonprofit corporation in its duties as liaison in matters relating to the military and to provide oversight for the military's presence in Hawaii and the impact that defense spending has on Hawaii's economy.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

MILITARY AFFAIRS LIAISON TRUST FUND

     §   ‑1  Military affairs liaison trust fund; established.  (a)  There is established the military affairs liaison trust fund as a separate fund of a Hawaii nonprofit corporation selected pursuant to subsection (g).  Moneys received from the state, county, or federal government, private contributions of cash and other property, and the income and capital gains earned by the fund shall constitute the trust fund assets.

     (b)  The nonprofit corporation shall be authorized to expend moneys from the trust fund for the purposes of this chapter.

     (c)  The purpose of the trust fund is to support the nonprofit corporation in its duties as the state liaison in matters relating to the military.  Those duties shall include:

     (1)  Serving as an advocate for the military and small businesses desiring to do business with the military and other federal agencies;

     (2)  Promoting a strong and viable partnership between the state and county governments and the military commands;

     (3)  Building rapport with installation commanders and military communities;

     (4)  Facilitating business development opportunities for small businesses in defense and other federal contracting;

     (5)  Participating in discussions regarding the schooling of military children in Hawaii's public schools;

     (6)  Facilitating coordination with the state and county governments and private owners in providing the lands and resources needed by the military to fulfill its missions in defending and securing the United States against all enemies;

     (7)  Supporting the military in complying with federal and state laws on protecting and preserving Hawaii's natural resources, cultural sites, and artifacts; and

     (8)  Promoting programs and activities to enhance the quality of life for military personnel and their families.

     (d)  The fund may receive contributions, grants, or gifts in cash or otherwise from all sources.  The public and private sectors shall work together as partners in securing contributions for the fund.  The State may appropriate moneys to the military affairs liaison trust fund by legislative appropriation; provided that any appropriations made by the legislature are not intended to supplant the funding of existing programs.

     (e)  There shall be an endowment component of the military affairs liaison trust fund.

     (f)  The aggregate principal sum deposited in the military affairs liaison trust fund and any income and capital gains earned by the trust fund that are not expended for grantmaking or administration, shall be invested in accordance with the provisions of the nonprofit corporation in a manner intended to maximize the rate of return on investment of the trust fund consistent with the objective of preserving the trust fund's principal.

     (g)  The department of defense shall serve as the lead agency for the public sector and, in conjunction with the nonprofit corporation, may provide staffing for the board and advisory committee.  The governor shall select the nonprofit corporation that shall serve as the state liaison in matters relating to the military.

     (h)  The fund shall be audited annually by an independent auditor.  The results of the annual audit of the nonprofit corporation shall be submitted to the department of defense and legislature no later than thirty days from the date the nonprofit corporation receives the audit results.  In addition, the nonprofit corporation shall retain for a period of three years and permit the department of defense, the department of accounting and general services, the legislature, and the auditor, or their duly authorized representatives, to inspect and have access to all documents, papers, books, records, and other material pertinent to the fund and audit.

     (i)  In the event of the termination of the trust fund or the dissolution of the nonprofit corporation, the unspent appropriations made by the State, if any, shall revert back to the general fund.  Any other amounts remaining in the military affairs liaison trust fund shall be distributed at the recommendation of the board.

     §   ‑2  Receipt of funds.  The fund may accept contributions, grants, or gifts from corporations or other businesses, foundations, government, individuals, and other interested parties.

     §   ‑3  Military affairs liaison trust fund advisory board.  (a)  There shall be a military affairs liaison trust fund advisory board, which shall make the final recommendations to the nonprofit corporation for the expenditure of funds for the following activities:

     (1)  Grantmaking with private nonprofit organizations, public agencies, or qualified individuals to foster beneficial relations between the military and the State;

     (2)  Grantmaking to raise community awareness of the trust fund; and

     (3)  Administration of the trust fund.

     (b)  The board shall consist of seven members to be appointed as follows:

     (1)  The governor shall select one member who shall represent a nonprofit corporation to serve for a term of three years; provided that the member may not serve more than two consecutive terms;

     (2)  The governor shall select three members, one of whom shall be a union representative, from a list of names of seven persons submitted by the nonprofit corporation; provided that the three members shall serve for a term of three years; provided further that the terms of the initial board members shall be staggered as follows:

         (A)  One member shall be appointed to a one-year term;

         (B)  One member shall be appointed to a two-year term; and

         (C)  One member shall be appointed to a three-year term;

          provided further that none of these three members shall serve for more than two consecutive terms;

     (4)  One member shall be appointed from among the members of the senate by the president of the senate, to serve until the expiration of the member's term in the senate during which the member is appointed;

     (5)  One member shall be appointed from among the members of the house of representatives by the speaker of the house to serve until the expiration of the member's term in the house of representatives during which the member is appointed; and

     (6)  One member shall be the adjutant general or the adjutant general's designee.

     §   ‑4  Military affairs liaison trust fund advisory committee.  (a)  There shall be an advisory committee of the military affairs liaison trust fund.  Members of the advisory committee shall be initially selected prior to December 1, 2011.

     (b)  The advisory committee shall:

     (1)  Promote statewide planning and strategies for fostering beneficial relations between the military and the State;

     (2)  Establish criteria and guidelines for grantmaking for the board;

     (3)  Publicize the fund and solicit moneys from public and private sources, in collaboration with the board;

     (4)  Advise the department of defense on matters involving the presence of the military in the State and the impact of defense spending on Hawaii's economy; and

     (5)  Facilitate the exchange of information between groups concerned with matters relating to the military, the military's presence in Hawaii, and the impact that defense spending has on Hawaii's economy.

     (c)  The advisory committee shall include private and public members.  Public sector representation shall include the department of defense, the department of business, economic development, and tourism, and the department of education.  The advisory committee shall also elect the private sector representatives, whose membership shall equal one more than the number of public sector representatives.

     (d)  Each member of the advisory committee shall have one vote; provided that the representative of the department of defense shall not vote on matters relating to advising the department of defense.  The advisory committee shall also elect its officers from among its members.

     §   ‑5  Grants.  Subject to the approval of the adjutant general, grants provided for the fostering of beneficial relations between the military and the State may be used to, among other things:

     (1)  Advocate for the military and small businesses desiring to do business with the military and other federal agencies;

     (2)  Promote a strong and viable partnership between the state and county governments and the military commands;

     (3)  Build rapport with installation commanders and military communities;

     (4)  Facilitate business development opportunities for small businesses in defense and other federal contracting;

     (5)  Participate in discussions regarding the education of military children in Hawaii's public schools;

     (6)  Facilitate coordination with the state and county governments and private owners in providing the lands and resources needed by the military to fulfill its missions in defending and securing the United States against all enemies;

     (7)  Support the military in complying with federal and state laws on protecting and preserving Hawaii's natural resources, cultural sites, and artifacts; and

     (8)  Promote programs and activities to enhance the quality of life for military personnel and their families."

     SECTION 3.  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 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for deposit into the military affairs liaison trust fund.

     SECTION 4.  There is appropriated out of the military affairs liaison trust fund the sum of $           or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the purposes of chapter      , Hawaii Revised Statutes, relating to the military affairs liaison trust fund.

     The sums appropriated shall be expended by the nonprofit corporation selected pursuant to section    ‑1(g), Hawaii Revised Statutes, for the purposes of this Act.

     SECTION 5.  This Act shall take effect on July 1, 2030.

 



 

Report Title:

Military Affairs Liaison Trust Fund; Appropriation

 

 

Description:

Establishes the Military Affairs Liaison Trust Fund as a separate fund of a nonprofit corporation, to support the nonprofit corporation in its duties as the state liaison in matters relating to the military.  Appropriates funds for the trust fund.  Effective July 1, 2030.  (SD1)

 

 

 

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