STAND. COM. REP. NO. 2249

Honolulu, Hawaii

RE:    S.B. No. 2368

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2368 entitled:

"A BILL FOR AN ACT RELATING TO THE PROTECTION OF CHARITABLE ASSETS,"

begs leave to report as follows:

     The purpose and intent of this measure is to codify a portion of the Model Protection of Charitable Assets Act to authorize the Attorney General to protect charitable assets, enforce the application of the charitable asset to prevent or remedy the misapplication, diversion, waste, or breach of duty in management of a charitable asset, and conduct investigations.

     Your Committee received testimony in support of this measure from the Department of the Attorney General and Commission to Promote Uniform Legislation.

     Your Committee finds that this measure codifies section 3 of the Model Protection of Charitable Assets Act (Act).  One of the major goals of the Act is to articulate the Attorney General's duty to represent the public interest in the protection of charitable assets.  The Act declares and clarifies the scope of the Attorney General's duty to protect charitable assets but does not limit the authority or powers that already exist.  The Department of the Attorney General testified that most of the other sections of the Act are already contained in chapters 28 and 467B, Hawaii Revised Statutes.  Therefore, this measure codifies only one section of the Act.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2368 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair