STAND. COM. REP. NO. 1500

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1079
                                        H.D. 3
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1079, H.D. 3, S.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 establish a standard procedure
for the conversion from one type of business entity to another.

     This measure adds similar provisions to each of the Hawaii
Business Corporation Act, Professional Corporations Act, Hawaii
Nonprofit Corporation Act, the partnership law, Uniform Limited
Partnership Act, and the Uniform Limited Liability Company Act
that controls the conversion of a business entity from one form
to another.

     Your Committee finds that at present, businesses often
cannot convert to another form, but instead must be dissolved and
created in the new form.  By standardizing the process of
conversion of business entities this bill not only simplifies but
revolutionizes the procedures.  As a result of this measure, any
business entity will be able to convert to any other type of
entity desired.  This level of business flexibility encourages
the development of business, improves the State's business
climate, and will thus assist the local economy.

 
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                                   STAND. COM. REP. NO. 1500
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1079, H.D. 3, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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