§210D-11 Grants; conditions and qualifications. (a) Grants shall be made for amounts not to exceed $100,000 for each applicant. Applications for grants shall be made to the department and contain such information as the department shall require by rules adopted pursuant to chapter 91. At a minimum, the applicant must show that:
(1) The grant shall be used exclusively for community-based economic development activities or a community-based business or enterprise that are consistent with the purposes of this chapter for a continuous period of at least five years;
(2) The community-based business or enterprise shall have applied for or received all applicable licenses and permits;
(3) The applicant will comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap;
(4) The grant shall not be used for purposes of entertainment or perquisites;
(5) The applicant shall comply with other requirements as the department of business, economic development, and tourism may prescribe;
(6) All activities and improvements undertaken with funds received shall comply with all applicable federal, state, and county statutes and ordinances, including applicable building codes and agency rules;
(7) The applicant will indemnify and save harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and procure sufficient insurance to provide this indemnification if requested to do so by the department; and
(8) The facilities will not be used and are not intended to be used for sectarian instruction or as a place of worship.
(b) To receive a grant under this section for community-based economic development activities or development of a community-based enterprise, an applicant shall:
(1) Be either:
(A) A profit subsidiary of a nonprofit community-based organization incorporated under the laws of the State;
(B) A nonprofit community-based organization determined to be exempt from federal income taxation by the Internal Revenue Service; or
(C) A cooperative association;
(2) In the case of a nonprofit organization, have a governing board whose members have no material conflict of interest and serve without compensation, have bylaws or policies that describe the manner in which business is conducted and policies relating to nepotism and management of potential conflict of interest situations, and employ or contract with no two or more members of a family or kin of the first or second degree unless specifically permitted by the department;
(3) Agree to make available to the department all records the applicant may have relating to the operation of the community-based enterprise, to allow state agencies to monitor the applicant's compliance with the purpose of this chapter; and
(4) Establish, to the satisfaction of the department, that sufficient funds are available for the effective operation of the activity, business, or enterprise for the purpose for which the grant is awarded. [L 1990, c 111, pt of §2; am L 1991, c 255, §2(2); am L 1996, c 192, §11; am L 2009, c 124, §8]
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