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REPORT OF THE COMMITTEE ON <br />GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS <br />DATE: May 19, 2026 <br />PLACE: Council Chambers <br />Hilo, Hawaii <br />TIME: 9:00 a.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Re: Comm. No. 873Bill No. 156 <br />Your Committee on Governmental Operations and External Affairs, to which was referred <br />Bill No. 156, reports as follows: <br />Bill No. 156, transmitted by Council Member Holeka Goro Inaba, via Communication No. 873, <br />dated April 20, 2026, amends Chapter 2, Article 25, Section 2-137, of the Hawaii County Code <br />1983 (2016 Edition, as amended), relating to appropriation of funds to nonprofit organizations. <br />This bill requires a nonprofit organization applying for County grant funds to certify, under penalty <br />or perjury, that the organization has internal policies relating to management, audits, fiscal <br />procedures, nepotism, and conflicts of interest. <br />Member Inaba explained that he worked on this bill with the Department of Finance. He explained <br />that in the Waiwai grant process there has been a lot of time and work spent by staff in trying to <br />obtain documents from nonprofit organizations and ascertain whether or not they meet all of the <br />requirements. He said that this bill is to clarify that the language provided by the organizations <br />meets the standards and requirements stated in the County Code. He said this ordinance will <br />simplify the process and create greater consistency in meeting these requirements. <br />Committee Member Matt Kaneah'i-Kleinfelder spoke in favor of this bill and mentioned that he <br />will work with Member Inaba on an amendment. <br />Committee Member Heather L. Kimball asked if this declaration would be filed once a year. <br />Member Inaba said that was the intention and the Finance Department would be working on that. <br />Committee Chair Jenn Kagiwada asked for clarification on whether the issue has been <br />documentation and staff time that is required to sort through the bylaws. Member Inaba said "yes." <br />Chair Kagiwada asked whether or not one individual Council Member could require additional <br />documentation or take additional action against a nonprofit based on this new language. She was <br />concerned about proper checks and balances. <br />Corporation Counsel Renee Schoen explained that this entire section affects nonprofits applying <br />for any type of grant. She said that the language in this section is regarding eligibility and would <br />not be contributing to a situation like what Chair Kagiwada was suggesting. <br />GOEAC Report No. 133 <br />