§312-3.7 Friends of the library of Hawaii program fund. (a) There is established as a separate fund of the Friends of the Library of Hawaii, a Hawaii nonprofit corporation, the friends of the library of Hawaii program fund. All moneys contributed to the fund, including income and capital gains earned therefrom, shall be used exclusively for state library programs as defined in the articles, bylaws, resolutions, and other instruments executed on behalf of the Friends of the Library of Hawaii or by the state librarian. The fund may receive any and all types of private contributions, and the income and capital gains earned by the fund; provided that moneys or properties donated for library use and patrons' deposits shall be deposited and accounted for in accordance with rules adopted by the comptroller. The fund shall be subject to the following restrictions:

(1) All moneys, and the income and capital gains earned by investment of those moneys, shall be expended only for the support of state library programs; and

(2) Other restrictions imposed by the legislature with respect to the transfer or appropriation of moneys.

(b) Any moneys deposited in the fund, and any income and capital gains earned therefrom, not used for state library programs, shall be invested in accordance with the provisions of the articles, bylaws, resolutions, or other instruments executed on behalf of the Friends of the Library of Hawaii, and in a manner intended to maximize the rate of return on investment of the fund.

(c) If the fund is terminated or the Friends of the Library of Hawaii is dissolved, all moneys, including the income and capital gains earned by the investment of moneys, shall be distributed in accordance with the articles and bylaws of the Friends of the Library of Hawaii.

(d) The Friends of the Library of Hawaii shall require an annual audit of the fund, the results of which shall be submitted to the board of education and the legislature not more than thirty days after receipt by the Friends of the Library of Hawaii. The Friends of the Library of Hawaii shall retain for a period of three years, any documents, papers, books, records, and other evidence that is pertinent to the fund, and permit inspection or access thereto by the board of education, the state librarian, the department of accounting and general services, state legislators, and the state auditor, or their duly authorized representatives.

(e) The purpose of this section is to create by statute a private charitable fund to financially support state library programs. The fund shall be subject to the terms and conditions provided in this section. The fund shall not be placed in the state treasury and the State shall not administer the fund nor be liable for its operation or solvency. The fund shall be a private charitable account in a federally insured financial institution with such account being held in the name of the Friends of the Library of Hawaii. [L 1993, c 328, §1; am L 2000, c 4, §2; am L 2012, c 308, §3; am L 2018, c 171, §3]