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 S.B. No. 1349 entitled:

begs leave to report as follows:

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

University Health Alliance testified in support of this measure. The testimony of the Insurance Commissioner raised concerns about this measure.

Chapter 416, Hawaii Revised Statutes (HRS), relating to corporations, generally, was repealed following the enactment of the Hawaii Nonprofit Corporation Act, codified in chapter 415B, (HRS). References to the repealed chapter, however, remain in section 432:1-201, HRS, a provision in the mutual benefit societies law pertaining to incorporation of a mutual benefit society by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. This measure removes those obsolete statutory references.

Based upon the testimony of the Commissioner, your Committee finds that the deleted statutory references should be replaced with references to chapter 415B, HRS, that now governs the incorporation of mutual benefit societies. Additionally, a corresponding amendment is required to the purposes provision of chapter 415B, HRS, to include a reference to mutual benefit societies. Incorporating these additional amendments, however, may be precluded under the title of this measure.

Your Committee further finds that the concerns raised by the Commissioner merit further examination and discussion. Therefore, your Committee has amended this measure by inserting an effective date of July 1, 2050.

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