Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 928 entitled:

begs leave to report as follows:

The purpose of this measure is to limit the liability of a director of a nonprofit corporation for acts or omissions taken while acting on behalf of the corporation.

Your Committee received testimony in favor of this measure from the Peoples Advocacy for Trails Hawai'i and Hawaii Bicycling League. Opposing testimony was received from the Business Registration Division of the Department of Commerce and Consumer Affairs and Consumer Lawyers of Hawaii.

Your Committee finds that nonprofit organizations play a vital role in improving the community and advocating worthy causes. By limiting the liability of corporate directors, nonprofit corporations will be able to attract and retain highly qualified individuals to serve as directors.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 928 and recommends that it pass Second Reading and be referred to the Committees on Commerce, Consumer Protection and Housing and Judiciary.