Report Title:

Office of Hawaiian Affairs; Powers; Limited Liability Companies

Description:

Clarifies that OHA may create limited liability companies and other entities to and to engage in other transactions.

HOUSE OF REPRESENTATIVES	H.B. NO.	2703
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE OFFICE OF HAWAIIAN AFFAIRS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 10-4, Hawaii Revised Statutes, is amended to read as follows:

     "§10-4  Office of Hawaiian affairs; established; general powers.  There shall be an office of Hawaiian affairs constituted as a body corporate which shall be a separate entity independent of the executive branch.  The office, under the direction of the board of trustees, shall have the following general powers:

     (1)  To adopt, amend, and repeal bylaws governing the conduct of its business and the performance of the powers and duties granted to or imposed upon it by law;

     (2)  To acquire in any lawful manner any property, real, personal, or mixed, tangible or intangible, or any interest therein; to hold, maintain, use, and operate the same; and to sell, lease, or otherwise dispose of the same at such time, in such manner and to the extent necessary or appropriate to carry out its purpose;

     (3)  To determine the character of and the necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to the office of Hawaiian affairs;

     (4)  To enter into and perform such contracts, leases, cooperative agreements, or other transactions with any agency or instrumentality of the United States, or with the State, or with any political subdivision thereof, or with any person, firm, association, or corporation, whether operated on a for-profit or not-for-profit basis, as may be necessary or appropriate in the conduct of [its] the office's business and on such terms as it may deem appropriate[;], including but not limited to:

(A) Creating nonprofit entities, including but not limited to limited liability companies and charitable fund-raising foundations, to be controlled wholly by the office or jointly with others; and

(B) Establishing, subscribing to, and owning stock in business corporations individually or jointly with others;

     (5)  To execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;

     (6)  To issue revenue bonds pursuant to this chapter in such principal amounts as may be authorized from time to time by law to finance the cost of an office project as authorized by law and to provide for the security thereof as permitted by this chapter;

     (7)  To lend or otherwise apply the proceeds of the bonds issued for an office project either directly or through a trustee or a qualified person for use and application in the acquisition, construction, installation, or modification of an office project, or agree with the qualified person whereby any of these activities shall be undertaken or supervised by that qualified person or by a person designated by the qualified person;

     (8)  With or without terminating a project agreement, to exercise any and all rights provided by law for entry and re-entry upon or to take possession of an office project at any time or from time to time upon breach or default by a qualified person under a project agreement, including any action at law or in equity for the purpose of effecting its rights of entry or re-entry or obtaining possession of the project or for the payments of rentals, user taxes, or charges, or any other sum due and payable by the qualified person to the office pursuant to the project agreement; and

     (9)  [To take such actions as may be necessary or appropriate to carry out the powers conferred upon it by law.] To have and exercise all rights and powers, and take such actions, that are necessary, appropriate, incidental to, or implied from the general or specific powers granted in this chapter, which general or specific granted powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this chapter."

     SECTION 2.  Section 10-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The board shall have any powers which may be necessary or appropriate for the full and effective performance and discharge of the duties imposed by this chapter, and which may be necessary or appropriate to fully and completely effectuate the purposes of this chapter."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________