Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 1319, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to update the laws governing limited partnerships in Hawaii by replacing the current Uniform Limited Partnership Act with a modified version of the National Conference of Commissioners on Uniform State Law's 2001 Revised Uniform Limited Partnership Act (2001 ULPA).

The Department of Commerce and Consumer Affairs (DCCA) and a few individuals submitted testimony in support of this measure.

Your Committee applauds DCCA's ongoing efforts to enhance the business climate of our State. The 2001 ULPA represents the latest effort of the Uniform Law Commissioners to modernize and improve our country's uniform business laws. Among these changes are provisions that would allow the creation of limited liability limited partnerships, or "LLLPs," a new business entity formation that will provide additional flexibility for limited partnerships in Hawaii.

Your Committee believes that this improved version will make Hawaii a more attractive place to do business, as well as provide greater certainty in the law.

Your Committee has amended this measure by making technical amendments for purposes of clarity and consistency. Amendments to conform related provisions of the Hawaii Revised Statutes to the 2001 ULPA were also made.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1319, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1319, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary.