Business Dev Corporations

Establishes DBEDT regulation over business development
corporations.  Prohibits the formation of business development
corporations after the effective date of the Act.

HOUSE OF REPRESENTATIVES                H.B. NO.1365       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 420, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "420-     Examination by director of business, economic
 5 development, and tourism.  (a)  The corporation shall be subject
 6 to examination by the department of business, economic
 7 development, and tourism, and shall make an annual report to the
 8 director of business, economic development, and tourism regarding
 9 compliance with this chapter and all rules adopted thereunder, as
10 well as provide any other information as may from time to time be
11 required by the director.
12      (b)  If the director of business, economic development, and
13 tourism determines that the corporation is not in compliance with
14 this chapter or any rules adopted thereunder, the director may
15 order the corporation to comply or be dissolved."
16      SECTION 2.  Section 420-17, Hawaii Revised Statutes, is
17 amended to read as follows:
18      "420-17  [Limitation] Limitations on effect of chapter.  If
19 a corporation organized pursuant to this chapter fails to begin

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                                     H.B. NO.1365       

 1 business within two years from the effective date of its
 2 articles, then the articles shall become void.  No corporation
 3 may be organized pursuant to this chapter after the effective
 4 date of this Act.  No existing business development corporation
 5 may merge with any corporation organized pursuant to chapter 415
 6 after the effective date of this Act."
 7      SECTION 3.  The department of business, economic
 8 development, and tourism shall submit a report to the legislature
 9 on the role, formation, authority, responsibilities, and
10 objectives of business development corporations in the State of
11 Hawaii no later than two years from the effective date of this
12 Act.  In developing this report, the department of business,
13 economic development, and tourism shall confer with the
14 department of commerce and consumer affairs and the department of
15 taxation.
16      SECTION 4.  Statutory material to be repealed is bracketed.
17 New statutory material is underscored.
18      SECTION 5.  This Act shall take effect upon its approval.
20                           INTRODUCED BY:  _______________________