Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2729 entitled:

begs leave to report as follows:

The purpose of this measure is to correct statutory references throughout the Hawaii Revised Statutes relating to the business corporation and nonprofit corporation laws.

The Commissioner of Securities testified in support of this measure.

Effective July 1, 2001, the Hawaii Business Corporation Act, codified in chapter 415, Hawaii Revised Statutes (HRS), was repealed and replaced by a new business corporations law codified in chapter 414, HRS. Similarly, effective July 1, 2002, the Hawaii Nonprofit Corporation Act, codified in chapter 415B, HRS, will be repealed and replaced by a new nonprofit corporations law codified in chapter 414D, HRS.

Various provisions throughout the Hawaii Revised Statutes still contain references to the repealed and soon-to-be repealed provisions. Therefore, this measure replaces these obsolete references with references to the appropriate current or to-be-effective law. Additionally, this measure updates the law that allows agencies to implement fee modifications without rulemaking and subject to the governor's approval, by including therein references to the laws governing business entities.

Your Committee has amended this measure by making technical, nonsubstantive changes to reflect preferred drafting style.

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. 2729, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2729, S.D. 1, and be referred to the Committee on Judiciary.