STAND. COM. REP. NO. 701

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1079
                                     H.D. 2




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1079, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to allow corporations,
partnerships, limited liability partnerships, and limited
liability companies to convert easily to another form of business
entity.

     Current Hawaii law is unclear on how to convert between
these different types of business entities. Generally, a business
entity would have to dissolve its present form and reform by
complying with the registration requirements of another type of
entity.  This can be a time-consuming and expensive process.

     Your Committee finds that the process of converting between
these types of business entities should be able to be done
reasonably and expeditiously.  The adoption of a standard
conversion procedure would assist current and future businesses
in the State, and help to improve the State's business climate.


 
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                                 STAND. COM. REP. NO. 701
                                 Page 2

 
     Testimony in favor of this bill was received from the
Department of Commerce and Consumer Affairs and the Hawaii
Business League.

     Your Committee has amended this bill by making technical and
stylistic nonsubstantive changes. 

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1079, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as H.B. No. 1079, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair

 
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