STAND. COM. REP. NO. 3261

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2480
                                        H.D. 1
                                        S.D. 1



Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2480, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO LIMITED LIABILITY
     PARTNERSHIPS,"

begs leave to report as follows:

     The purpose of this measure is to facilitate the formation
of limited liability partnerships (LLPs) in Hawaii.

     Testimony on the measure was received from the Commissioner
of Securities, Business Law Section of the Hawaii State Bar
Association, and two law firms.

     Current State law governing LLPs contains contradictions and
anomalies that hinder interpretation and application of the law.
This measure brings Hawaii's law into greater conformity with the
Revised Uniform Partnership Act and with current business
practices by eliminating the insurance and financial
responsibility requirements and removing the prohibition against
the formation of LLPs by attorneys.  The elimination of these
restrictions and modernization of the law will make Hawaii a more
attractive LLP domicile. 

     Your Committee has amended this measure by making technical,
nonsubstantive changes for consistency and style.   

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to

 
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                                   STAND. COM. REP. NO. 3261
                                   Page 2


this report, your Committee is in accord with the intent and
purpose of H.B. No. 2480, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2480, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.

                                   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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