STAND. COM. REP. NO. 265

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1079
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1079 entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONVERSION OF BUSINESS
     ENTITIES,"

begs leave to report as follows:

     The purpose of the bill is to allow corporations,
partnerships, limited liability partnerships, and limited
liability companies to convert to another form of business entity
provided for under Hawaii law.

     Testimony in support of the measure was submitted by the
Department of Commerce and Consumer Affairs, the Hawaii Business
League, and the Business Law Section of the Hawaii Bar
Association.

     Your Committee finds that current law is unclear on the
process of converting business entities from one form to another,
thus discouraging new businesses from organizing in Hawaii.  This
measure will streamline and clarify the process of converting
business entities, resulting in savings of both time and money.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the

 
 
                                 STAND. COM. REP. NO. 265
                                 Page 2

 
intent and purpose of H.B. No. 1079, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1079, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair