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 S.B. No. 1229 entitled:

begs leave to report as follows:

The purpose of this measure is to require a nonprofit corporation whose bylaws provide for appointment of a majority of its board of directors by a government official or agency, to abide by chapter 92, Hawaii Revised Statutes (HRS), relating to public agency meetings and records otherwise known as the Sunshine Law, and chapter 92F, HRS, relating to the Uniform Information Practices Act (UIPA).

Testimony in support of this measure was received from the Office of Information Practices (OIP), Advocates for Consumer Rights, The League of Women Voters of Hawaii, and four individuals.

This measure addresses the issue of whether or not hybrid public-private organizations, groups with both governmental and non-governmental qualities, are subject to the Sunshine Law and the UIPA. The OIP has devoted time-consuming effort to resolving citizen inquiries on this matter. This measure addresses and resolves the uncertainty.

Your Committee has amended this measure to add nonprofits whose assets are payable to the State upon dissolution or whose majority of funds are public funds, and to make technical, nonsubstantive amendements.

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. 1229, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1229, S.D. 1, and be placed on the calendar for Third Reading.