STAND. COM. REP. NO.  176

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 878

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 H.B. No. 878 entitled:

"A BILL FOR AN ACT RELATING TO NONPROFIT CORPORATIONS,"

begs leave to report as follows:

     The purpose of this bill is to provide clarity and flexibility to nonprofit corporations in using technology that is readily available to its leadership and members.  Specifically, this measure:

     (1)  Expressly permits members of nonprofit corporations to vote by ballot that may be transmitted electronically;

     (2)  Allows directors of nonprofit organizations to receive notices of meetings by electronic transmission; and

     (3)  Hold or facilitate meetings using electronic technology, such as the Internet, teleconference, or other form of electronic transmission.

     The Department of Commerce and Consumer Affairs, Hawaii Association of Independent Schools, Hawaii State Teachers Association, University of Hawaii Professional Assembly, Hawaii Alliance of Nonprofit Organizations, and Hawaii Community Foundation testified in support of this bill.

     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 H.B. No. 878 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

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

____________________________

ROBERT N. HERKES, Chair