STAND. COM. REP. NO. 3218

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2482
                                        H.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. 2482, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CONTROL SHARE ACQUISITIONS,"

begs leave to report as follows:

     The purpose of this measure is to facilitate business
acquisitions in the State. 

     The Department of Commerce and Consumer Affairs, the
Business Law Section of the Hawaii State Bar Association, and a
law firm submitted testimony on the measure. 

     This measure exempts acquisitions of shares pursuant to a
merger or share exchange, or approved by the board of directors
of an issuing public corporation from the shareholder approval
requirements of the Hawaii Business Corporation Act.  Your
Committee finds that these amendments to the Act will improve the
business climate of the State by making business acquisitions
easier and will promote the long-term growth and stability of the
State's domestic corporations by deterring hostile takeovers of
Hawaii public corporations. 

     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 H.B. No. 2482, H.D. 1, and recommends that it pass
Second Reading and be placed on the calendar for Third Reading.


 
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                                   STAND. COM. REP. NO. 3218
                                   Page 2


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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     HB2482