SB3281

SECTION 1. The legislature finds that, pursuant to Act 398, Session Laws of Hawaii 1988, the Bernice Pauahi Bishop Museum was designated as the State of Hawaii Museum of Natural and Cultural History and, pursuant to Act 291, Session Laws of Hawaii 2007, the Friends of Iolani Palace was designated as the State of Hawaii Museum of Monarchy History. The legislature also finds that the intent of these designations was to provide the museums with a reliable funding source so that they would no longer be dependent on grants and private donations. The legislature further finds that, during the regular session of 2022, $7,500,000 was appropriated to the State of Hawaii Museum of Natural and Cultural History and $2,000,000 was appropriated to the State of Hawaii Museum of Monarchy History.

The legislature believes that to ensure that the operations of the museums are in alignment with the State's vision, two ex officio, voting members, to be selected from certain state agencies, should be added to board of directors of each museum.

The purpose of this Act is to:

(1) Require that the State of Hawaii Museum of Natural and Cultural History and the State of Hawaii Museum of Monarchy History boards of directors include two ex officio, voting members, to be selected from the board of land and natural resources, university of Hawaii, board of agriculture, or the department of accounting and general services;

(2) Require the State of Hawaii Museum of Natural and Cultural History to submit an annual report to the legislature; and

(3) Establish standards and conditions that the State of Hawaii Museum of Natural and Cultural History must meet to receive state funds.

SECTION 2. Section 6E-35, Hawaii Revised Statutes, is amended to read as follows:

"§6E-35 Iolani Palace. (a) The official designation of the palace of the former monarchs of Hawaii shall be Iolani Palace.

(b) The official designation of the Friends of Iolani Palace shall be the State of Hawaii Museum of Monarchy History[.]; provided that effective July 1, 2024, in order for the designation to remain in effect, the board of directors shall include two ex officio, voting members, to be selected by the board from the following:

(1) The chair of the board of land and natural resources, or the chair's designee;

(2) The president of the university of Hawaii, or the president's designee;

(3) The chair of the board of agriculture, or the chair's designee; or

(4) The comptroller, or the comptroller's designee.

(c) The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the State of Hawaii Museum of Monarchy History; provided that if the museum contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

[~~(c)~~] (d) To receive state funds, the State of Hawaii Museum of Monarchy History shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which funds are appropriated;

(2) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

(3) Agree not to use the funds for entertainment or lobbying activities;

(4) Be incorporated under the laws of the State;

(5) Have bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided;

(6) Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

(7) Have a governing board whose [~~members~~] membership shall include two ex officio, voting members, and other members who shall have no material conflict of interest and serve without compensation.

[~~(d)~~] (e) The comptroller and state auditor shall have the authority to examine the use of funds appropriated to the State of Hawaii Museum of Monarchy History.

[~~(e)~~] (f) The State of Hawaii Museum of Monarchy History shall provide to the legislature an annual report no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year."

SECTION 3. Section 6E-40, Hawaii Revised Statutes, is amended to read as follows:

"§6E-40 Bernice Pauahi Bishop Museum. (a) The official designation of the Bernice Pauahi Bishop Museum shall be the State of Hawaii Museum of Natural and Cultural History[.]; provided that effective July 1, 2024, in order for the designation to remain in effect, the board of directors shall include two ex officio, voting members, to be selected by the board from the following:

(1) The chair of the board of land and natural resources, or the chair's designee;

(2) The president of the university of Hawaii, or the president's designee;

(3) The chair of the board of agriculture, or the chair's designee; or

(4) The comptroller, or the comptroller's designee.

(b) The qualifying standards and conditions related to the receipt of funds contained in chapter 42F shall not apply to funds received by the State of Hawaii Museum of Natural and Cultural History; provided that if the museum in turn contracts with a recipient or provider, then the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

(c) The State of Hawaii Museum of Natural and Cultural History shall provide to the legislature an annual report no later than twenty days prior to the convening of each regular session, which shall include an explanation of the facility maintenance and other functions accomplished by state fund expenditures in the previous fiscal year.

(d) To receive state funds, the State of Hawaii Museum of Natural and Cultural History shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which funds are appropriated;

(3) Agree not to use the funds for entertainment or lobbying activities;

(4) Be incorporated under the laws of the State;

(5) Have bylaws or policies that describe the manner in which the activities or services for which a grant is awarded shall be conducted or provided;

(6) Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service; and

(7) Have a governing board whose membership shall include two ex officio, voting members, and other members who shall have no material conflict of interest and serve without compensation."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3281
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII