Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 600, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to facilitate the formation and operation of businesses in this State.

The Department of Commerce and Consumer Affairs (DCCA) testified in support of this measure.

This measure clarifies ambiguities and corrects inaccuracies in Hawaii's business registration laws, and simplifies the fee structure applicable to business entities. By updating the law to reflect contemporary business practices, Hawaii will enhance its ability to attract new businesses and retain existing businesses.

Your Committee has amended this measure by replacing its contents with the language of S.B. No. 1076, S.D. 1, a measure that is substantively similar to this measure, but reflects preferred drafting style and conforms the fee structures for business entities.

In addition, your Committee amended the language of the Senate version to clarify control share acquisitions exempted from the Control Share Acquisition Act and to reflect current statutory language.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 600, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 600, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary.