REPORT TITLE:
Culture and the Arts


DESCRIPTION:
Improves the operation of the Honolulu Symphony endowment fund.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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HOUSE OF REPRESENTATIVES                H.B. NO.           H.D.1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CULTURE AND THE ARTS.



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

 1      SECTION 1.  Music is an integral part of the cultural fabric
 
 2 of Hawaii, and the people of Hawaii are proud of their rich
 
 3 musical heritage.  In 1995, the legislature responded to a labor
 
 4 dispute between the musicians in the Honolulu Symphony Orchestra
 
 5 and the Honolulu Symphony Society, which manages the Honolulu
 
 6 Symphony Orchestra, which had not presented a concert since May
 
 7 of 1993.  As a result of the labor dispute, the musicians formed
 
 8 the Hawaii Symphony Orchestra which began performing in 1994.
 
 9      Previously in 1987, in support of symphonic music, the
 
10 legislature had created an endowment fund and appropriated
 
11 $2,000,000 to it.  Income and capital gains from the endowment
 
12 fund were directed for use by the Honolulu Symphony Orchestra.
 
13 However, in 1995, the Honolulu Symphony Orchestra was not
 
14 presenting any concerts, and concerts were being presented by the
 
15 Hawaii Symphony Orchestra.
 
16      In response to this situation, the legislature enacted Act
 
17 175, Session Laws of Hawaii 1995, which transferred to the state
 
18 foundation on culture and the arts (state foundation) instead of
 
19 the Honolulu Symphony, the income and capital gains from the
 

 
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                                     H.B. NO.           H.D.1
                                                        
                                                        

 
 1 endowment fund.  In turn, the state foundation had the discretion
 
 2 of directing the moneys to any Oahu-based symphony orchestra.
 
 3      Since 1995, the labor dispute has been resolved and the
 
 4 Honolulu Symphony Orchestra has resumed operations, producing
 
 5 resoundingly successful concerts.  The mechanism adopted by Act
 
 6 175, Session Laws of Hawaii 1995, to administer endowment fund
 
 7 proceeds is no longer needed since these proceeds are now being
 
 8 directed to the Honolulu Symphony Orchestra.  However, the
 
 9 mechanism remains, and this mechanism has proven to be cumbersome
 
10 and time-consuming.
 
11      The purpose of this Act is to restore the manner in which
 
12 the Honolulu Symphony Orchestra is funded by the income and
 
13 capital gains from the State of Hawaii endowment fund.
 
14      SECTION 2.  Section 40-88, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "(a)  There shall be established as a separate fund of the
 
17 Honolulu symphony trust created by the trust agreement dated
 
18 December 5, 1986, a fund to be known as the State of Hawaii
 
19 endowment fund.  The income and capital gains from the
 
20 [$2,000,000 contributed by the State of Hawaii shall be
 
21 transferred on a quarterly basis to the state foundation on
 
22 culture and the arts (SFCA), performing and visual arts events
 
23 private contribution account to be used for the production of
 

 
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                                     H.B. NO.           H.D.1
                                                        
                                                        

 
 1 music by an Oahu-based symphony orchestra as determined by the
 
 2 state foundation on culture and the arts.] fund shall be used for
 
 3 the performance of symphonic music by the Honolulu symphony
 
 4 orchestra.  The fund manager and the Honolulu symphony orchestra
 
 5 will annually provide a copy of an external audit and financial
 
 6 report to the SFCA and to the department of accounting and
 
 7 general services.  The State of Hawaii endowment fund shall be
 
 8 subject to the restrictions that:
 
 9      (1)  No part of the principal amount contributed to the fund
 
10           by the State or by matching grants shall be used for
 
11           [operations of] the performance of symphonic music by
 
12           the Honolulu symphony[;] orchestra;
 
13      (2)  The fund manager and the board of trustees will
 
14           administer the fund consistent with chapter 517D
 
15           (UMIFA);
 
16      (3)  Income and capital gains from the fund shall not be
 
17           distributed for use [in the operations of] for the
 
18           performance of symphonic music by the Honolulu symphony
 
19           orchestra during any period that the value of the fund
 
20           shall be less than the principal amounts contributed to
 
21           the fund; and
 

 
 
 
 
 
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                                     H.B. NO.           H.D.1
                                                        
                                                        

 
 1      (4)  The amounts contributed to the fund by the State shall
 
 2           revert to the State to the extent that matching or
 
 3           other conditions to the grant of the funds are not met,
 
 4           and the fund also shall be subject to additional
 
 5           restrictions as may be imposed with respect to
 
 6           transfers of funds in future legislation appropriating
 
 7           sums to be contributed to the fund."
 
 8      SECTION 3.  All funds transferred pursuant to section
 
 9 40-88(a), Hawaii Revised Statutes, to the state foundation on
 
10 culture and the arts, performing and visual arts events private
 
11 contribution account, to be used for the production of music by
 
12 an Oahu-based symphony orchestra, and remaining in that fund at
 
13 the close of the 1998-1999 fiscal year shall be transferred back
 
14 to the State of Hawaii endowment fund to be used as provided in
 
15 section 40-88, Hawaii Revised Statutes.
 
16      SECTION 4.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 5.  This Act shall take effect on July 1, 1999.