STAND. COM. REP. NO.  1126

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 298

      S.D. 3

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 298, S.D. 3, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to establish an organizational and regulatory framework for sustainable business corporations, that are corporations that operate in a socially and environmentally sustainable manner.  To ensure that corporations given this designation abide by the requirements in the new chapter, this bill provides transparency and accountability for these companies.

     Numerous concerned individuals supported this bill.  The Chamber of Commerce of Hawaii supported the intent of this bill.  The Department of Commerce and Consumer Affairs provided comments.

     Your Committee has amended this bill by adding a provision allowing a sustainable business corporation to use of the right to exclude, conferred by any and all patents in which it has an interest in this right through assignment, license, lien, security agreement, or obligation to:

     (1)  Create and retain jobs;

     (2)  Uphold specific fair labor standards nationally and internationally; and

     (3)  Enhance environmental protection nationally and internationally.

     Technical, nonsubstantive amendments were also made by your Committee for clarity, consistency, and style.

     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 S.B. No. 298, S.D. 3, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 298, S.D. 3, H.D. 2.

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

____________________________

ROBERT N. HERKES, Chair