Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 782 entitled:

begs leave to report as follows:

The purpose of this bill is to remove problems caused by the dual requirements that the law imposes on non-profit corporations that are associations organized under the condominium law, by providing that these entities are not subject to the provisions of the Hawaii Nonprofit Corporations Act governing cumulative voting and the removal of directors.

Testimony in support was submitted by a private citizen.

Your Committee finds that the cumulative voting and director removal provisions of the nonprofit corporations law may conflict with procedures adopted by an association in their bylaws that would otherwise be acceptable under the condominium law. This bill will help to restore to these nonprofit corporation associations, the ability to manage the condominium property regime through their declaration and bylaws with minimal state law interference.

Your Committee has changed the effective date of this bill to July 1, 2099, to facilitate further discussion of the measure.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 782, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 782, H.D. 1, and be referred to the Committee on Judiciary.