STAND

STAND. COM. REP. NO. 17-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2433

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2433 entitled:

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

begs leave to report as follows:

The purpose of this bill is to update and increase the effectiveness of Hawaii's business registration law by:

(1) Clarifying ambiguities and correcting errors that exist due to drafting errors and changes in division policies and procedures and in federal and common law;

(2) Promoting uniformity throughout the business registration chapters by adding or amending definitions and other language;

(3) Clarifying that Hawaii corporations have an alternative way for internal decisions to be made by way of shareholder agreements that will help them avoid the expense and inflexibility associated with shareholder meetings;

(4) Providing for the appointment of a trustee or receiver for dissolved nonprofit corporations;

(5) Allowing the State to govern the relationships between partners in Hawaii partnerships;

(6) Repealing the requirement that operating agreements for limited liability companies be in writing;

(7) Repealing the prohibition against dual registration by salespersons and investor advisor representatives; and

(8) Repealing the provision requiring securities sales experience to be eligible for registration as a broker-dealer.

The Business Registration Division of the Department of Commerce and Consumer Affairs submitted testimony in support of this measure with amendments.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2433 and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection and Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

		____________________________ BRIAN SCHATZ, Chair