STAND. COM. REP. NO. 54

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1270
                                     




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. 1270 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 remove barriers to voluntary
community participation in unincorporated nonprofit associations
(UNAs), by giving UNAs legal status and associated legal
protections and benefits.  The measure:

     (1)  Gives UNAs the legal capacity to receive, hold, and
          transfer personal and real property;

     (2)  Limits the liability of members and functionaries of
          UNAs for tort and contract;

     (3)  Provides UNAs standing to sue and be sued as
          associations;

     (4)  Establishes a procedure for disposing of the property
          of an inactive UNA; and

     (5)  Permits the UNA to designate an agent for service of
          process.

     Testimony in support of this bill was received from the
Commission to Promote Uniform Legislation of the Department of

 
 
                                 STAND. COM. REP. NO. 54
                                 Page 2

 
the Attorney General.  The Business Registration Division of the
Department of Commerce and Consumer Affairs submitted comments.

     Your Committee believes that this bill will benefit the
community by making voluntary participation by citizens in
associations that support the diverse range of possible community
activities, more secure.

     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
intent and purpose of H.B. No. 1270 and recommends that it pass
Second Reading and be referred to the Committees on Consumer
Protection and Commerce and Judiciary and Hawaiian Affairs.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair