STAND. COM. REP. NO. 93

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1141
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 1141 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to establish a standard
conversion procedure under which corporations, partnerships,
limited liability partnerships, and limited liability companies
may convert to any other form of business entity authorized under
State law.

     The Department of Commerce and Consumer Affairs presented
testimony in support of this measure.  The Business Law Section
of the Hawaii State Bar Association and two individuals, though
not present, submitted written testimony in support of this
measure. 

     Your Committee finds that currently, a business entity
wishing to convert into another form of a business entity is
required to dissolve the business and form a new entity.  This is
often a time consuming and costly process.

     This measure simplifies and expedites the conversion process
by establishing a standard procedure common to all forms of
business entities.  By simplifying the conversion process, the
State will provide greater flexibility for growing businesses

 
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                                   STAND. COM. REP. NO. 93
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operating in Hawaii and encourage new business development in the
State.

     Your Committee has made technical, nonsubstantive amendments
to reflect preferred drafting style and add missing statutory
language.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1141, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1141, S.D. 1, and be referred to the Committee on Ways and
Means.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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