Haw. R. Sup. Ct. 10.4

As amended through June 28, 2024

Rule 10.4 - Powers and duties of the trustees

The trustees shall have the following duties and responsibilities:

(a) The Fund shall cause its financials to be reviewed by a CPA annually and at such other times as the supreme court shall direct. The supreme court may also, at its discretion, order a full audit. The reviews shall be at the expense of the Fund. The annual review shall be included in a report to be submitted annually by the trustees to the Hawaii State Bar and the supreme court reviewing in detail the administration of the Fund during the preceding year;

(b) The trustees may apply to the supreme court for interpretations of these rules and of the extent of their powers and duties and for advice regarding the proper administration of the Fund;

(c) The treasurer shall maintain the assets of the Fund in a separate account and shall disburse monies therefrom only upon the action of the trustees pursuant to these rules. The treasurer shall obtain a bond annually covering all of the trustees with such surety as may be approved by the trustees and in such amount as they may fix, or the treasurer may transfer the assets of the Fund to the custody of a corporate trustee authorized to do business as a trust company in the State of Hawai'i;

(d) To cause to be investigated all applications for reimbursable losses brought to the trustees' attention;

(e) To determine the order and manner of payment of applications for reimbursement;

(f) To reject or allow applications in whole or in part to the extent that funds are available;

(g) To use or employ the Fund for any of the following purposes within the scope of the Fund's objectives:

(1) to make reimbursements on approved applications;

(2) to purchase insurance to underwrite such losses in whole or in part;

(3) to invest such portions of the Fund as may be permitted under state law for such entities;

(4) to deposit monies in interest-bearing accounts in federally insured banks, federally insured savings and loan associations, or any other federally insured financial institution located in the state; the interest or other income will be a part of the Fund;

(h) To provide a full report of the Fund's activities at least annually to the supreme court and make other reports of its activities and publicize its activities as the trustees may deem advisable;

(i) To enforce claims which the Fund may have for restitution;

(j) To employ and compensate consultants, counsel and employees as the trustees deem appropriate;

(k) To make reimbursements for administrative expenses incurred in the administration of the Fund; and

(l)

(i) to develop an annual budget for operating the Fund and performing the functions of the trustees, to develop appropriate financial policies for managing all funds received by the trustees, and to propose an annual fee;

(ii) to submit, no later than September 15 each year, the developed budget, financial policies, and fee structure to the Hawai'i State Bar to allow an opportunity for meaningful review, analysis, input, and comment by the Hawai'i State Bar prior to submission to the supreme court;

(iii) to receive written comments, if any, from the Hawai'i State Bar regarding the budget, financial policies, and fee structure;

(iv) to reply in a timely fashion in writing to any written comments from the Hawai'i State Bar regarding section (iii), provided the comments were received no later than October 15; and

(v) to submit, no later than November 1 each year, the budget, financial policies, and annual fee along with any and all written comments received from the Hawai'i State Bar, and any replies thereto, to the supreme court for its review and approval

(m) Trustees shall refrain from taking part in any proceeding in which a judge, similarly situated, would be required to abstain. If, in any given case, it shall become necessary for the continuation of a case, or the orderly operation of the Fund, the supreme court may appoint, for that case only, one or more ad hoc Trustees as it deems necessary. Each ad hoc Trustee shall fulfill all the responsibilities of a Trustee.

Haw. R. Sup. Ct. 10.4

Added July 29, 1981, effective 7/29/1981; amended May 24, 1984, effective 5/24/1984; renumbered September 1984; further amended July 1, 1986, effective 7/1/1986; further amended October 27, 1989, effective 11/1/1989, subject to transitional orders; further amended February 7, 1992, effective 2/7/1992; further amended April 8, 2002, effective 7/1/2002; further amended June 25, 2003, effective 7/1/2003; further amended April 4, 2005, effective 7/1/2005; further amended May 12, 2020, effective 7/1/2020.