STAND. COM. REP. NO.  448

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 235

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 235 entitled:

"A BILL FOR AN ACT RELATING TO LIMITED LIABILITY COMPANIES,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Allow a limited liability company to be designated as an "ingenuity company" by the Director of Commerce and Consumer Affairs; and

     (2)  Require an ingenuity company to use its right to exclude, conferred by patents in which it has an interest, for certain public purposes.

     Enterprise Honolulu and several concerned individuals supported this bill.  The Commissioner of Securities of the Business Registration Division of the Department of Commerce and Consumer Affairs (DCCA) opposed this bill.

     Your Committee notes that the proponents of this bill and DCCA are working to address the concerns raised during testimony on this matter. 

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2112, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 235, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 235, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. MCKELVEY, Chair