STAND

STAND. COM. REP. NO. 23

Honolulu, Hawaii

, 2005

RE: S.B. No. 744

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 744 entitled:

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

begs leave to report as follows:

The purpose of this measure is to clarify ambiguities and correct errors in the State's business registration laws.

The Department of Commerce and Consumer Affairs testified in support of this measure.

This bill is a general housekeeping measure that is necessary to clarify ambiguities and correct errors that have occurred as a result of changes in the Business Registration Division's policies and procedures, and drafting errors. Among other things, this measure:

(1) Adds a provision on personal liability and penalty that was inadvertently omitted from the limited partnership law;

(2) Repeals potentially conflicting provisions relating to the effect of a merger and articles of merger;

(3) Clarifies that service of process may be effected by certified or registered mail if a named agent for service of process is not found within the State;

(4) Clarifies that the requirement of an entity designation in a registered name does not apply to foreign entities;

(5) Conforms requirements for administrative dissolution and reinstatement; and

(6) Corrects the definition of "individual".

Your Committee finds that by updating, clarifying, and establishing greater consistency and uniformity in Hawaii's business registration laws, this measure will facilitate the operation of business entities in this State.

Your Committee has amended this measure by making technical amendments for the purposes of clarity, consistency, and style, and to correctly reflect the language in the Hawaii Revised Statutes.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 744, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 744, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Housing,

		____________________________ RON MENOR, Chair