HomeMy WebLinkAboutBIL 176 Draft 03 2022-2024COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAPI
BILL NO. 176
(DRAFT 3)
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 25 OF THE HAWAVI 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 Hawaii 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:
[(4)] "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 Count council of the Count of Hawaii.
"Department" means the County agency reponsible for administering a grant.
[(2-)] "Director" means the [direetoF of finanee of the G,,,,,,yj head of the County
agency re onsible for administering a grant.
[(3)] "Grant" means an appropriation of [publ-ie] County funds [to ^ .,effpremot
orgy " a^ on f w ^ ptiblie "'"•" pursuant to this article.
[(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 [eFganized f other *ha
profit
the internal Revenue Godam] that is registered and in good standing in the State
of Hawaii 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
eo le and the environment as ma be determined by the County."
SECTION 2. Chapter 2, article 25, section 2-137, of the Hawaii 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[.
eriteri-a ] within the County. All nonprofit organizations seeking awards of County grants
shall meet the folIowin ell ibili re uirements;
[(I) The nenprefit organization is chartered of otherwise atithorized to do business
in the State for charitable purposes and exempted from the Federal ineeme tw
ce
benefits to the -people of the Geti�.
(2) The purposes for which the nonprofit organization is organized provide
County, and —
funded by the shall address editeational f
eultur-e and the ai4s,
the needs 44"oaf, youth, the aged, these with physieel et! emoti
disabilities, victims of > vietirns of health or soeial efises,
or Publi
health and welfare of the people and the -enviremnea�, as ma-y-be determined
by the Count -]
[(4)]M The nonprofit organization has a governing board whose members serve
without compensation and [ha-ve no ,,enfl et of interest between their Fegula
] adhere
to a written conflict of interest policy which complies with requirements of the
Internal Revenue Service, State law, and rules and regulations of the finance
director.
[(5)]Q The nonprofit organization has bylaws or policies which describe the
manner in which business is conducted, including management, audit, and
fiscal policies and procedures, written policies on prohibiting nepotism, and
policies on management of potential conflict of interest.
te the satisfaction of the County guffleient V
Aise to successfully earrf-etA
the service or aetivity.
[{a}] The nonprofit organization must be licensed and accredited in accordance
with applicable requirements of Federal, State, and County laws.
(4) 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) The mayor;
(C) The managing director;
(D) The director;
E The corporation counsel the assistant corporation counsel or a de U
corporation counsel-, or
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fF}_ Any County officer or employee with oversi lit ofthe grant, if known."
SECTION 3. Chapter 2, article 25, section 2-138, of the Hawaii County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-138. Conditions for [grmits ] grant awards.
La) The County may only grant an award when:
W The program or service proposed in the rant application yields direct benefits
to the public and accomplishes public purposes within the County; and
Q 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 carLy out
the service or activity.
Nonprofit organizations to whom [a grant has bee-n] any grant is awarded shall
agree to comply with the following conditions before receiving the giant:
(1) Employ and appoint persons on the basis of merit and ability;
(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, [off] disability, or other identified class;
(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
[1egislati-ye] 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 fiends; and
(6) [Eneh nenprefit organization shall submit a disclosure form along with it
grant application whieh lists any board member, officer-, dimetor o
UlAl1I ll l I Jl
t l • Utler thatmay a y have a n liet of int,•rest . ete ntial .,o fliet o
Werest
ineluding any familial relationship with any of the fbllewing�
♦♦ i
(/\ ) ^ • N11
er ar- members of the 1 1 /� l i
by a
( ) Tll
( ) The Inariagifig direeteT
(E) The �ireeto of fiiian e;5 9
(F) The corporation > ,
or a deputy
corporation e0tinsel.
The diselosure form shall speeify any and all mitigation measures to
avoid, in fact or appear -an „fliet f interest.-]
All fiends awarded shall be restricted for the purposes stated in the application
and approved by the council. No more than ten percent of a grant may be
awarded for administrative and overhead costs,"
SECTION 4. Chapter 2, article 25, section 2-139, of the Hawaii County Code 1983
(2016 Edition, as amended) is amended to read as follows:
"Section 2-139. Procedure for awarding grants.
(a) All [gfant awards made to a neaprefit organization by the County] grants awarded
pursuant to this article shall be made in accordance with one of the following
procedures:
(1) [Q.a.,ts : .,.a awardedally in theratiiie ,,,g 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
[to he available in] for the ensuing fiscal year for [Ringing .• _iuests by
nonprofit ] 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 applioations fer grants shall be submitted to the director J�,
County's fiscal -,
July 1. Applications shall be prepared on forms pt!avided by the direeten
A Beat..,. not i .,oaf with the requirements of this (`o e may
S lr./�Jii Vll4E ViSJ iSV4 ill VVili V••� specific, measurable outcomes and publie
benefits l /+ 1
to l der
ived
eriyed fr-o DNA
&"en a;t,,,•e of gaii,,ty tiads.] 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
finds; 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-eounei1] all [qualifying]
applications [as provided in sections 2 137 and 2 1 ] which meet the
eligibilfty requirements established in section 2-137 to the council for its
review and appropriation of finds. [Site
et!gatiizations submitting complete applieations a eonducted by the
council and its designated s
as deemed neeessaty by the ehaif of !h
appropriat@-C-6ii3m4fee, after jan tear 31 but3�— t8final acrrot:,,,rr-�v'ri the
ttne
operating bedget by the eouneil. Any site visitations shall be pub4c4y
noticed and condueted in a mamwf that allows flexible er
par-tieipation and IIsignated staff n ,•t.]
(D) [ikon] The council shall review all eli ig ble applications and assess
whether the conditions for a grant have been met, and upon favorable
action by the council to award grants and appropriate fiends for [the
gam] Waiwai grants-in-aid to the nonprofit organizations, the finance
department shall prepare a written contract [ ] 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 [Ie&�] County auditor, or council to effectively
monitor and evaluate the use of the grant fiords. [Age eies shall be
notified by the director of their funding or lack thereof by August 3 ]
(E) 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 council district contingency relief fiunds:
(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 and award 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.
[(M]Q Appropriations from the district contingency relief account shall be
approved by resolution and transferred to (an aeeepting County
] 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)]fQ) Any equipment purchased by a nonprofit organization shall be
domiciled with that nonprofit organization[—,wh-tc-h] in the County.. The
nonprofit organization shall assume any and all responsibility and
liability for such equipment.
[(C)] E A contract shall be prepared by the identified department and
executed with the nonprofit organization which shall [rat]_
(i) Comply with all legal requirements of the County, and [s 1RU]
ii Include program, fiscal, and audit reporting requirements sufficient
to allow the [4egf a4w] County auditor or council to effectively
monitor and evaluate the use of the grant funds.
(3) Ott -ter 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 or-d ,.,ne of] 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 finds shall be used in [an ordi ,. nee a a resolution and be subject to
competition in compliance with chapter 103D of the Hawaii Revised
Statutes.
(C) Grant awards of $25,000 or less may be authorized by the finance
director for r„„mesa] projects or programs that accomplish public
purposes upon written request of a [funding geney o_] department. Such
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grant awards shall not be limited to nonprofit organizations but shall
specifically identify the organization and program, project or event for
which the grant fiends shall be used and comply with the rules and
regulations of the finance director [of- i ee].
(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
council for its [deeiaienJ approval. 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[;] fiords, the council
may direct the return of the frill appropriation or the balance of unexpended
fiends.
(3) For other grant awards authorized as prescribed in 2-139(a)(3), the [fnanc-e]
director may direct the return of the frill grant amount or balance of the
unexpended fiords."
SECTION 5. Chapter 2, article 25, section 2-142.1, of the Hawaii 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 [o4he
at efl clari_ and/or implement 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 finds awarded will be restricted for the purposes stated in the application
[ ] and that no more than ten percent of the rant may be used
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.
C
SECTION 8. This ordinance shall take effect upon approval.
Hawai` i
Date of Introduction:
Date of I st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm. 918.9
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAVI
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