HomeMy WebLinkAboutBIL 176 Draft 01 2022-2024 4°J*`M of \11v•;
COUNTY OF HAWAI`I � ' + STATE OF HAWAI`I
BILL NO. 176
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 25 OF THE HAWAI`I
COUNTY CODE 1983 (2016 EDITION,AS AMENDED), RELATING TO
APPROPRIATION OF FUNDS TO NONPROFIT ORGANIZATIONS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I:
SECTION 1. Chapter 2, article 25, section 2-136, of the Hawai`i County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-136. Definitions.
As used in this article, unless the context otherwise requires:
[(1)] "Conflict of interest"means a substantial probability that action taken by an
individual will result in measurable direct benefits accruing to the individual
as opposed to benefits accruing in general to an industry.
"Council"means the County council of the County of Hawai`i.
"Department"means the County agency reponsible for administering a grant.
[(2)] "Director" means the [director of finance of the County.] head of the County
agency reponsible for administering a grant.
[(3)] "Grant"means an appropriation of public funds to a nonprofit organization for
a public purpose.
[(4)] "Nepotism"means appointing persons to positions on the basis of their blood
or marital relationship to the appointing authority, rather than on merit or
ability.
[(5)] "Nonprofit organization"means an organization [organized for other than
profit making purposes and which has a current 501(c)3 tax exemption from
the Internal Revenue Code.] that is registered and in good standing in the State
of Hawai`i as a nonprofit organization and maintains a 501(c)(3) charitable
designation from the Internal Revenue Service.
[(6)] "Perquisite" means a privilege furnished or a service rendered by an
organization to an employee, officer, director, or member of that organization
to reduce the individual's personal expenses.
"Public purpose" means a benefit to, improvement of, or promotion of the
interests of educational concerns, culture and the arts, needs of the poor,
youth,the aged, those with physical or emotional disabilities, victims of
crimes, victims of health or social crises, or public health and welfare of the
people and the environment, as may be determined by the County."
SECTION 2. Chapter 2, article 25, section 2-137, of the Hawai`i County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-137. Eligible organizations.
All grant payments made by the County to nonprofit organizations are to be made
in accordance with these standards so that the funded nonprofit programs yield direct
benefits to the public and accomplish public purposes[. No grant to a nonprofit
criteria:] within the County. All nonprofit organizations seeking awards of County grants
shall meet the following eligibility requirements:
by the Internal Revenue Service.
(2) The purposes for which the nonprofit organization is organized provide
benefits to the people of the County.
(3) The service or activity to be provided by the nonprofit organization, and
funded by the County, shall address a t' ' It a tb r+
th reeds of the roor,yo th, the aged,those with physical or emotional
health and welfare of the people and the environment, as may be determined
by the County.]
[(4)](1) The nonprofit organization has a governing board whose members serve
without compensation and have no material conflict of interest [between their
].
[(5)](2) The nonprofit organization has bylaws or policies which describe the
manner in which business is conducted, including management, audit, and
fiscal policies and procedures, policies on prohibiting nepotism, and policies
on management of potential conflict of interest.
[(6)](3) The nonprofit organization has at least one year's experience with the
service or activity for which the appropriation is sought or can otherwise
demonstrate to the satisfaction of the County sufficient expertise to
successfully carry out the service or activity.
[(7)](4) The nonprofit organization must be licensed and accredited in accordance
with applicable requirements of Federal, State,and County laws."
SECTION 3. Chapter 2, article 25, section 2-138, of the Hawai`i County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-138. Conditions for [giant ] grant awards.
(a) The County may only grant an award when the program or service proposed in the
grant application yields direct benefits to the public and accomplishes public
purposes within the County.
(b) Nonprofit organizations to whom [a grant has been] any grant is awarded shall
agree to comply with the following conditions before receiving the grant:
(1) Employ and appoint persons on the basis of merit and ability;
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(2) 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 [handicap;] disability;
(3) Agree not to use any public funds for purposes of personal entertainment or
perquisites;
(4) Comply with such other requirements as the director may prescribe to ensure
adherence by the nonprofit organization with Federal, State, and County laws,
and established standards for fiscal and program management;
(5) Allow the director, the committees of the council and their staffs, and the
[legislative] County auditor access to facilities, personnel, records, reports,
files, and other related documents in order that the program, management, and
fiscal practices of the nonprofit organization may be monitored and evaluated
to assure the proper and effective expenditure of public funds[; and]
(6) [
a t + th t h r f iet o f interest te„tia, f f
interest, including any familial relationship with any of the following:] The
nonprofit organization shall disclose any of its board members, officers,
directors, or administrators who may have a familial or business relationship
with any of the following:
(A) A member or members of the council;
[(B) Staffarrointea by a member of the c. ncil;]
[(C)](B) The mayor;
[(D)1(C) The director;
[(E)](D) The managing director;
[(F RE) The corporation counsel, the assistant corporation counsel, or a
deputy corporation counsel; or
(F) Any County officer or employee with oversight of the grant.
[The disclosure form shall specify any and all mitigation measures to
avoid, in-fa«t-er ne, nfic f interest.] Should a disclosure be
made,the County shall take steps to prevent the employee's participation
and/or influence in determining eligibility for grant consideration, award of a
grant, and compliance with required grant reporting; and
(7) All funds awarded shall be restricted for the purposes stated in the application,
except for a maximum ten percent for administrative and overhead costs."
SECTION 4. Chapter 2, article 25, section 2-139, of the Hawai`i County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-139. Procedure for awarding grants.
(a) All grant awards made to a nonprofit organization by the County shall be made in
accordance with one of the following procedures:
(1) [Grants ,a a a ally i,, the ernting budget•] Waiwai grants-in-
aid:
(A) Annually, before November 30, the finance director shall, for the
purpose of soliciting applications, establish a sum of at least $2,500,000
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[to be available in] for the ensuing fiscal year for [funding requests by
nonprofit organizations.] Waiwai grant-in-aid awards. The finance
director shall also publish a notice soliciting applications in two
newspapers of general circulation within the County by November 30.
(B) [All applications for grants shall be submitted to the director on or
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Applications not in conformance with the requirements of this Code may
be rejected. All application forms shall include detailed information on
specific, .,,eas„rable-o tcomes and public benefits to be derived from the
expenditure of County funds.] Applications for Waiwai grants-in-aid
shall be made on forms prescribed by the finance director and shall be
submitted to the finance director on or before the last day of January
following publication of the notice as provided in subparagraph(A). No
application shall be considered for any Waiwai grant-in-aid award unless
the application:
(i) Conforms with the requirements of this Code;
(ii) Includes detailed information on specific, measurable outcomes
and public benefits to be derived from the expenditure of County
funds; and
(iii) Complies with all other requirements and instructions for
submission as the finance director may direct.
(C) The finance director shall submit [to the council] all [qualifying]
applications [as provided in sections 2 137 and 2 138] which meet the
eligibility requirements established in section 2-137 to the council for its
review and appropriation of funds. [Site visitations of nonprofit
organizations submitting complete applications may be conducted by the
council and its designated staff, as deemed necessary by the chair of the
appropriate committee, after January 31 but prior to final action on the
noticed and conducted in a manner that allows flexible councilmember
participation and designated staff support.]
(D) [Upon] The council shall review all qualifying applications, and upon
favorable action by the council to appropriate funds for [the grant,]
Waiwai grants-in-aid to the nonprofit organizations,the finance
department shall prepare a written contract [shall be prepared] with the
nonprofit organization which shall meet all legal requirements of the
Federal, State, and County governments.,and shall include program,
fiscal, and audit reporting requirements sufficient to allow the finance
director, the [legislative] County auditor, or council to effectively
monitor and evaluate the use of the grant funds. [Agencies shall be
]
The finance director shall notify each nonprofit organization by August
31 if the council has approved or denied its application for a Waiwai
grant-in-aid.
(2) Grants from district contingency relief funds:
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(A) Requests for district contingency relief grants shall be made directly to
council members on a form prescribed by the council. The council shall
determine whether requests meet the eligibility conditions of this article.
(B) Prior to introducing a resolution for a contingency relief grant, a council
member shall identify a department to administer the contingency grant.
[( ](C) Appropriations from the district contingency relief account shall be
approved by resolution and transferred to [an accepting County
department/agency via resolution identifying] the identified department
for administration. The resolution shall identify the nonprofit
organization and the specific program, project, event, activity, service,
equipment, materials, or supplies for which the grant shall be used.
[(B-)](D) Any equipment purchased by a nonprofit organization shall be
domiciled with that nonprofit organization[, which] in the County. The
nonprofit organization shall assume any and all responsibility and
liability for such equipment.
[(C)1(E) A contract shall be prepared by the identified department and
executed with the nonprofit organization which shall [meet]i
CO Comply with all legal requirements of the County;.and [shall]
(ii) Include program, fiscal, and audit reporting requirements sufficient
to allow the [legislative] County auditor or council to effectively
monitor and evaluate the use of the grant funds.
(3) Other grants:
(A) Grant awards in excess of$25,000 to nonprofit organizations shall
specifically identify the organization receiving the grant funds and the
purpose for which the grant funds shall be used in [an ordinance or] a
resolution.
(B) Grant awards in excess of$25,000 to organizations that do not qualify as
nonprofit organizations shall specifically identify the purpose for which
the funds shall be used in [an ordinance or] a resolution and be subject to
competition in compliance with chapter 103D of the Hawai`i Revised
Statutes.
(C) Grant awards of$25,000 or less may be authorized by the finance
director for [pub'ic „urp se] projects or programs that accomplish public
purposes upon written request of a [funding agency or] department. Such
grant awards shall not be limited to nonprofit organizations but shall
specifically identify the organization and program, project or event for
which the grant funds shall be used and comply with the rules and
regulations of the director of finance.
(b) In the event that a grantee organization is unable or unwilling to provide the public
service(s) or purchase(s) for which grant funds were appropriated,the following
procedures shall apply:
(1) For grant awards authorized as prescribed in 2-139(a)(1),the mayor may
direct the finance director to solicit applications from eligible nonprofit
organizations to fulfill the specific public purpose(s) for which the funds were
originally appropriated for the remainder of the fiscal year. The director shall
forward recommended application(s) and appropriation measure(s) to the
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council for its decision. Funds appropriated to a successor nonprofit
organization shall not exceed the balance of unexpended County funds
awarded to the original nonprofit organization.
(2) For grant awards from [the] district contingency relief[,] funds,the council
may direct the return of the full appropriation or the balance of unexpended
funds.
(3) For other grant awards authorized as prescribed in 2-139(a)(3),the [finance]
director may direct the return of the full grant amount or balance of the
unexpended funds."
SECTION 5. Chapter 2, article 25, section 2-142.1, of the Hawai`i County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-142.1. Rules.
(a) The finance director shall adopt rules as may be necessary to meet the requirements
of this article.
(b) All application forms shall include a right to audit clause.
(c) All application forms shall include, "As part of this application, you acknowledge
that any funds awarded will be restricted for the purposes stated in the application
except for a maximum ten percent for administrative and overhead costs."
SECTION 6. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance,the brackets, bracketed and stricken material, and
underscoring need not be included.
SECTION 7. Severability. If any provision of this ordinance, or the application thereof
to any person or circumstance, is held invalid, the invalidity does not affect other provisions or
applications of the ordinance that can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 8. This ordinance shall take effect upon approval.
INTRODUCED BY:
U �°v
COUNCIL MEMBER, COUNTY OF HAWAI`I
, Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
918
REFERENCE Comm. 6