COM 0423.003 2002-2004 - Laserfiche WebLink

Home

law for a specified object of purpose, but excludes trust fundsb and revolving funds. In fact, when the legislature attempted to use the Shipper's Wharf Committee Trust Funds, the Attorney General opined that transferring the Trust Funds to the general fund would be in violation of the court order.' The Trust Funds were presented in the State's Comprehensive Annual Financial Report (CAFR) as a fiduciary fund because the governor was its trustee.8 The Shipper's Wharf Committee Trust Fund has also been reviewed by the State Auditor who has found that the accounts continue to serve its original purpose and the Trust Fund does not require general fund appropriations.9 In October 2000, Trustee Benjamin J. Cayetano, Governor, petitioned the Court for instructions to (1) delegate trust administration to state director of finance; (2) give notice to potential beneficiaries of the solicitation of requests for Trust disbursements; (3) authorize the director of finance to designate a committee to review disbursement proposals; and (4) authorize the director of finance to file an annual accounting of receipts, disbursements, and requests with the attorney general.10 In April 2001, the Court approved Trustee Cayetano's petition to produce a fairer and more accessible selection and disbursement process. The assets of the Trust at that time had an estimated value exceeding $2.5 million." A letter dated March 20, 2003, from State Budget and Finance Director Georgina Kawamura to Mayor Harry Kim suggested that the County would be in the best position to administer the Hilo Shippers' Wharf Trust. A letter dated April 1, 2003, from Mayor Harry Kim concurs with Governor Lingle's transfer. On June 30, 2003, Trustee Linda Lingle, Governor, requested the Court approve the Trustee's resignation; appoint the Mayor of the County of Hawai i as successor trustee; vest legal title in and to all properties of the Trust; transfer properties of the Trust to the successor trustee; and confirm that the charitable purposes of the Trust remain unchanged." On September 11, 2003, the Court accepted Trustee Lingle's resignation; appointed Mayor Harry Kim and successors in interest at Trustee of the Hito Shipper's Wharf Committee Trust; ordered the continued filing of an annual financial accounting with the Attorney General; and ordered the charitable purposes remain unchanged and unaffected.13 On October 3, 2003, the Court vested legal title in and to all property of the trust in Harry Kim, Mayor of the County of Hawaii, and his successors in interest.14 A subsequent Petition by Trustee Kim allowing the County Director of Finance to administer the Fund was approved by the Court. b Chapter 37-64, HRS, "Trust fund" means a fund in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise or bequest that limits the use of the fund to designated objects or purposes." "Trust fund" in Chapter 37 is used in the context of the State Budget. ' Sam Callejo, Chief of Staff, Governor's Offce, letter dated April 3, 2001. s Telecon with State Department of Accounting and General Services-Accounting Division Head Wayne Horie. " Chapter 23-12, HRS, requires that trust funds administered by the state be reviewed by the state auditor beginning in 1994 and every five years thereafter. 10 PETITION OF THE TRUSTEE FOR INSTRUCTIONS dated October 17, 2000. " Third Circuit Court ORDER dated April 5, 2001. `Z TRUSTEE'S PETITION FOR ORDER APPROVING RESIGNATION OF TRUSTEE, APPOINTING A SUCCESSOR TRUSTEE, AND FOR OTHER RELATED RELIEF dated June 30, 2003. "Third Circuit Court ORDER dated September 11, 2003. '"Third Circuit Court VESTING ORDER dated October 3, 2003. 2