STAND. COM. REP. NO.  750

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1027

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 1027, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to assist nonprofit corporations by:

     (1)  Allowing a domestic nonprofit corporation to convert to a foreign nonprofit corporation as prescribed by law, creating a procedure therefor, and clarifying the legal effect of conversions;

     (2)  Expressly recognizing that directors and officers of a nonprofit corporation have a duty of loyalty to the corporation; and

     (3)  Providing the Attorney General with additional time to review proposed dissolutions of nonprofits.

The Department of the Attorney General, Association of Fundraising Professionals-Aloha Chapter, Aloha Society of Association Executives, Hawaii Alliance of Nonprofit Organizations, and a concerned individual supported this measure.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1027, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SCOTT Y. NISHIMOTO, Chair