STAND. COM. REP. NO. 1233

Honolulu, Hawaii

RE:    H.B. No. 618

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 618, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT,"

begs leave to report as follows:

     The purpose of this measure is to enact the Uniform Prudent Management of Institutional Funds Act to accommodate contemporary investment and expenditure practices in the management of funds intended to finance charitable purposes. 

     This measure allows public and private sector entities to respond to changing market conditions and industry practices in the management of funds designated for charitable purposes.  This measure will facilitate efficient management and allow fund managers to maximize the return on their investments while protecting the interests of fund donors and beneficiaries. 

     Your Committee has amended this measure by:

     (1)  Deleting the definition of "activity and use limitations", as this term is not used in the measure, and inserting a definition of "charitable purpose" on the recommendation of the Attorney General; and

     (2)  Correcting references to federal statutes, on the recommendation of the Commission to Promote Uniform Legislation.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 618, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 618, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

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BRIAN T. TANIGUCHI, Chair