STAND. COM. REP. NO. 1273-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 3049
S.D. 2
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 3049, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CHARITABLE ANNUITIES,"
begs leave to report as follows:
The purpose of this bill is to allow more of Hawaii's charitable organizations to raise funds through the issuance of charitable gift annuities by relaxing net worth requirements under the State's insurance laws.
Hawaii Health Systems Foundation, The Trust for Public Land, Maui Youth and Family Services, Inc., Myerberg Shain & Associates, Big Brothers Big Sisters of Honolulu, Hawaii Conference of the Evangelical Lutheran Church in America "Hukilau", Royal State Learning Foundation, Saint Patrick Church, School, & Monastery, Life Foundation, Honolulu Zoo Society, Pacific Health Ministry, Hale Kipa, Pohai Nani Good Samaritan, Waialua United Church of Christ, Hale Ipu Kukui Alaka`i, and 17 concerned individuals supported this bill. The Department of Commerce and Consumer Affairs supported this measure with an amendment. The Nature Conservancy and Punahou School opposed this bill. The American Cancer Society and the American Heart Association of Hawaii commented.
Your Committee has amended this bill by:
(1) Increasing the foundation or organization's net worth requirement from $100,000 to $200,000 in cash, cash equivalents, or publicly traded securities, exclusive of the assets funding any annuity;
(2) Specifying that segregated assets shall not be considered in determining net worth;
(3) Requiring that the foundation or organization invest and manage assets according to the standards of a prudent investor;
(4) Requiring that annuities be issued with payout rates not to exceed the rate recommended by a to-be-determined entity; and
(5) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3049, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3049, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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