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 S.B. No. 1349, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to remove obsolete statutory references from the mutual benefit societies law.

University Health Alliance testified in support of this measure. The Insurance Division of the Department of Commerce and Consumer Affairs (Division) expressed concerns about this bill.

Your Committee finds that chapter 416 (Corporations, Generally), Hawaii Revised Statutes (HRS), was repealed following the enactment of the Hawaii Nonprofit Corporation Act, codified in chapter 415B, HRS. However, references to sections 416-19 and 416-20, HRS, remain in section 432:1-201, HRS, a provision in the mutual benefit societies law pertaining to incorporation of a mutual benefit society by charter. The proposed measure removes those obsolete statutory references.

Based upon the testimony of the Division, your Committee finds:

However, the narrow scope of this bill's title may constitutionally prohibit these amendments and necessitate another bill with a constitutionally acceptable title.

Your Committee further finds that concerns raised by the Division merit further examination and discussion. To allow these concerns to be addressed, your Committee reconsidered this measure and amended it by inserting an effective date of July 1, 2010.

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 S.B. No. 1349, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1349, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.