Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 586 entitled:

begs leave to report as follows:

The purpose of this bill is to allow professional and vocational licenses of business entities to be converted when the underlying entity has converted or merged to form a new business entity. To convert a professional or vocational license under the bill, licensees are required only to file applications for conversion and pay initial fees specified by the licensing agency. A converted license is automatically forfeited if the license holder fails to continue to comply with other licensing requirements of the profession or vocation.

Testimony in support of this measure was received from the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs.

Your Committee finds that Act 280, Session Laws of Hawaii (SLH) 1999, provided for the conversion from one form of ownership to another form, of business entities including domestic corporations, foreign corporations, general partnerships, limited partnerships, limited liability companies, or limited liability partnerships. However, there is no provision in this Act allowing conversion of the business entity's professional and vocational license to reflect the change in ownership form. Your Committee finds that this measure provides a remedy for this oversight.

Your Committee has made technical, nonsubstantive amendments to this bill:

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 586, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 586, H.D. 1, and be placed on the calendar for Third Reading.