Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 1423 entitled:

begs leave to report as follows:

The purpose of this bill is to support local businesses by allowing fiduciaries to:

(2) Manage and liquidate those investments,

without being in contravention of any prudent investor or person rule.

The Department of Business, Economic Development, and Tourism, Hawaii Venture Capital Association, Hawaii Technology Trade Association, and a concerned individual supported this bill.

Your Committee recognizes that this measure may provide a double benefit to Hawaii by stimulating investment in Hawaii startup companies and by providing greater rates of return for

fiduciaries, including Hawaii-based entities. Higher risks associated with venture capital investments are mitigated by the two and one-half percent limit on Hawaii venture capital investments.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1423 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.