Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which was referred H.B. No. 599 entitled:

beg leave to report as follows:

The purpose of this bill is to modernize Hawaii's nonprofit corporations law by conforming it to the most recent version of the Model Nonprofit Corporations Act.

Testimony in support of this measure was received from the Business Registration Division of the Department of Commerce and Consumer Affairs. The Aloha Society of Association Executives submitted testimony in support of the intent of the bill and voicing concerns.

Your Committees find that it is in the State's best interest to enact legislation that modernizes and maintains the uniformity of Hawaii's business registration laws. Your Committees agree with the Business Registration Division that by adopting model language that is uniform with a majority of the states and by incorporating the latest developments in business registration law, this measure supports a better flow of commerce, helps to develop our local economy, and improves Hawaii's business climate.

Your Committees have amended this bill by:

1. Requiring that a list members entitled to vote at a corporation meeting be made available for inspection at the meeting only if requested no fewer than five business days prior to the scheduled date of the meeting;
2. Requiring that only financial statements furnished to members in the past three years be kept, rather than all written communications and financial statements provided to members during that time; and
3. Making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 599, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 599, H.D. 1, and be referred to the Committee on Finance.