§312-3.8 Use of public library facilities. (a) Notwithstanding any law to the contrary, the head librarian of each library branch may request the issuance of licenses, revocable permits, concessions, or rights of entry to:

(1) The Friends of the Library of Hawaii;

(2) Affiliates of the Friends of the Library of Hawaii, through and with approval of the Friends of the Library of Hawaii; and

(3) Any tax-exempt nonprofit organization recognized by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code whose primary purpose is to support a state library branch,

for the use of public library system facilities and grounds, with the approval of the state librarian, in consultation with the board of education, for such periods of use as deemed appropriate by the state librarian. The state librarian shall administer any licenses, revocable permits, concessions, or rights of entry issued pursuant to this section. All such dispositions, including those in excess of fourteen days, need not be approved by the board of land and natural resources; provided that approval by the board of land and natural resources shall be required when such dispositions are for periods in excess of one year.

(b) Notwithstanding any law to the contrary, all net proceeds received by the Friends of the Library of Hawaii from the operation of any concession, vending machine, or other activity through a state-wide contract within, or on the grounds of, any state library facility shall be deposited into the friends of the library of Hawaii program fund. All funds deposited into the program fund, including income and capital gains earned therefrom, shall be used exclusively for state library programs.

(c) Notwithstanding any law to the contrary, all net proceeds received by the Friends of the Library of Hawaii, an affiliate of the Friends of the Library of Hawaii, or any nonprofit organization from the operation of any concession, vending machine, or other activity within, or on the grounds of, any state library facility shall be deposited into an account in a federally insured financial institution, with such account being held in that organization's name and controlled exclusively by that organization, which shall have sole authority and discretion in the disbursement of its funds. All funds deposited into the account, including income and capital gains earned therefrom, shall be used exclusively for the state library or libraries that the Friends of the Library of Hawaii, affiliate of the Friends of the Library of Hawaii, or nonprofit organization is organized to support.

(d) No later than September 30 of each year, the Friends of the Library of Hawaii and any nonprofit organization that has been issued a license, revocable permit, concession, or right of entry for the use of state public library system facilities and grounds shall submit to the state librarian an annual financial statement. The annual financial statement shall include:

(1) The name and address of any financial institution in which the net proceeds from the operation of any concession, vending machine, or other activity within, or on the grounds of, any state library facility were deposited and held;

(2) The name of any account, account number, and balance of all such accounts;

(3) A reasonable description of deposits into the account; and

(4) A reasonable description of withdrawals and disbursements including how the withdrawals and disbursements were used to support the appropriate state library.

The annual financial statement of the Friends of the Library of Hawaii shall include the financial statements, satisfying the criteria set forth above, of all of its affiliates that were issued a license, revocable permit, concession, or right of entry for the use of state library system facilities and grounds.

(e) The Friends of the Library of Hawaii, affiliates of the Friends of the Library of Hawaii, and any nonprofit organization that receives net proceeds from the operation of any concession, vending machine, or other activity within, or on the grounds of, any state library facility shall keep true and accurate records as to their activities in a form that will accurately provide support for the information required by this section. Upon demand, the records shall be made available to the state librarian for inspection. Records shall be retained for a period of not less than five years.

(f) The state librarian shall, upon ten days notice, revoke any license, permit, concession, or right of entry issued if the Friends of the Library of Hawaii, any affiliate of the Friends of the Library of Hawaii, or any tax-exempt nonprofit organization recognized by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code whose primary purpose is to support a state library branch fails to comply with any provision of this section, including the submission of an annual financial statement. The state librarian may, at the state librarian′s discretion, in consultation with the board of education, re-issue a license, permit, concession, or right of entry upon compliance with this section.

(g) For purposes of this section:

"Affiliate of the Friends of the Library of Hawaii" means any organization or entity that enters into a written agreement with the Friends of the Library of Hawaii to be an affiliate. The affiliate is not required to be recognized by the Internal Revenue Service as a tax-exempt nonprofit organization.

"Net proceeds" means all revenue generated from the operation of any concession, vending machine, or other activity within, or on the grounds of, any state library facility minus the costs incurred in generating those revenues, including but not limited to payments to third-party vendors and any expenses associated with operating the organization.

(h) The board of education may adopt rules pursuant to chapter 91 to carry out the purpose of this section. [L 1994, c 57, §1; am L 2001, c 106, §1; am L 2012, c 308, §4; am L 2018, c 171, §4]