STAND.
COM. REP. NO. 140
Honolulu, Hawaii
, 2019
RE: H.B. No. 944
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 944 entitled:
"A BILL FOR AN ACT RELATING TO NONPROFIT CORPORATIONS,"
begs leave to report as follows:
(1) Prohibiting a public benefit corporation, also known as a 501(c)(3) corporation, from purchasing its own memberships;
(2) Clarifying the functions, duties, and selection of members of a nonprofit organization's board of directors;
(3) Clarifying the duties of officers of nonprofit corporations; and
(4) Clarifying the time limit for a nonprofit corporation to provide notice to the Attorney General of the disposal of all or substantially all of the corporation's property outside of the ordinary course of business.
The Department of the Attorney General and Hawai‘i Alliance of Nonprofit Organizations testified in support of this measure.
Your Committee has amended this measure by:
(1) Adding language to authorize a board of directors to take action without a board meeting through electronic means;
(2) Changing its effective date to July 1, 2050, to promote further discussion; and
(3) Making technical, nonsubstantive amendments 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 H.B. No. 944, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 944, H.D. 1, and be referred to your Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ ROY M. TAKUMI, Chair |
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