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 H.B. No. 1166 entitled:

begs leave to report as follows:

The purpose of this bill is to update and modernize Hawaii's Limited Partnership Act by replacing it with the Uniform Limited Partnership Act, a modified version of the National Conference of Commissioners on Uniform State Law's (NCCUSL) 2001 Revised Uniform Limited Model Partnership Act.

Testimony in support of this measure was submitted by the Business Registration Division of the Department of Commerce and Consumer Affairs (DCCA).

Your Committee finds that during these tough economic times, every effort must be made to improve Hawaii's business climate. One such effort would be to modernize our business laws and make them more consistent with those of other states. This would give investors who desire to invest in Hawaii businesses a familiar set of guidelines for investment. Moreover, in interpreting our laws, Hawaii businesses and courts would be able to draw on decisions from other jurisdictions.

The NCCUSL model act on which this bill is based represents the latest effort of the Uniform Law Commissioners to modernize our country's uniform business laws. As set forth in this bill, the model act has been modified to conform to DCCA's filing procedures and practices. This bill allows limited partnerships to elect limited liability status for their general partners and establish a limited liability limited partnership (LLLP), which are increasingly being recognized and promoted by other states. It thereby provides additional flexibility for limited liability partnerships in Hawaii and encourages foreign LLLP registration in the State.

Your Committee believes the improvements made by this bill will reduce costs and make Hawaii a more attractive place to do business.

Technical, nonsubstantive amendments have been made for purposes of clarity, consistency, and style.

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 H.B. No. 1166, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1166, H.D. 1, and be referred to the Committee on Judiciary.