STAND

STAND. COM. REP. NO.1307

Honolulu, Hawaii

, 2003

RE: H.B. No. 1165

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1165, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO BUSINESS REGISTRATION,"

begs leave to report as follows:

The purpose of this measure is to facilitate the administration of the State's business registration laws by clarifying ambiguities and correcting errors, repealing unnecessary requirements, conforming requirements among different types of business entities, and conforming business registration laws to other business-related laws.

The Department of Commerce and Consumer Affairs testified in support of this measure. Comments on the measure were submitted by an individual.

This measure makes numerous amendments to the business registration laws, including amendments to:

(1) Prohibit the issuance of stocks by nonprofit corporations;

(2) Authorize name changes for limited liability companies;

(3) Correct terminology in the nonprofit corporations law;

(4) Simplify signatory requirements for articles of incorporation filings;

(5) Conform registered agent and registered office requirements for the various business entities;

(6) Adopt a trademark filing fee schedule and make other amendments consistent with the new trademark law; and

(7) Establish greater consistency and uniformity in the merger laws.

Your Committee has amended this measure by:

(1) Clarifying that within the context of the nonprofit corporations law the term "department" refers to the Department of Commerce and Consumer Affairs by defining the term in chapter 414D, Hawaii Revised Statutes;

(2) Establishing additional grounds for revocation of a trademark or service mark, clarifying the grounds for cancellation of a mark, and simplifying the application process for the registration of a mark; and

(3) Making technical amendments for purposes of clarity, consistency, and style, to correctly reflect the language of the Hawaii Revised Statutes, and 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 H.B. No. 1165, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1165, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

		____________________________ RON MENOR, Chair