STAND. COM. REP. NO. 861

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 949
                                        S.D. 1




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

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
949 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIFORM UNINCORPORATED
     NONPROFIT ASSOCIATION,"

begs leave to report as follows:

     The purpose of this bill is to enact the Uniform
Unincorporated Nonprofit Association Act (UUNAA).  More
specifically, this bill provides that when two or more members
meet for nonprofit purposes, they will be treated as a legal
entity with:

     (1)  The authority to acquire, hold, and transfer personal
          and real property;

     (2)  The authority to sue and be sued as a separate legal
          entity; and

     (3)  Separate contract and tort liability from its officers
          and members.

     Your Committee finds that enactment of the UUNAA will
clarify the status of, and encourage citizen participation in,
nonprofit associations such as homeowners' associations, parent-
teacher associations, athletic clubs, civic associations, and
neighborhood community associations.  Your Committee further
finds that nine other states -- Alabama, Arkansas, Colorado,

 
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                                   STAND. COM. REP. NO. 861
                                   Page 2


Delaware, Idaho, Texas, West Virginia, Wisconsin, and Wyoming
have adopted this act.

     Testimony in support of this measure was submitted by the
Commission to Promote Uniform Legislation and the Aloha Society
of Association Executives.  

     The Department of Commerce and Consumer Affairs (DCCA)
submitted testimony in support of the intent of this measure but
was concerned that the unincorporated nonprofit association would
be filing a notice of appointment or resignation with the
Department.  DCCA felt that such a record, if filed, would be
kept under the Business Registration Division's current record
keeping system and could cause confusion for the members of the
general public as they may think that the unincorporated
association is a registered entity.

     Upon further consideration, your Committee has amended this
measure by requiring that the unincorporated nonprofit
association file a notice of appointment and resignation with the
Bureau of Conveyances rather than with DCCA.  Technical, non-
substantive changes were also made for the purposes of clarity
and style.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
949, as amended herein, and recommends that it pass Third Reading
in the form attached hereto as S.B. No. 949, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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