REPORT TITLE:
Benefit Societies


DESCRIPTION:
Clarifies applicability of nonprofit corporations law to
formation of benefit societies.  (HB13 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        13
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MUTUAL BENEFIT SOCIETIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 415B-4, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "415B-4 Purposes.  A corporation may be organized under
 
 4 this chapter for any lawful purpose or purposes; provided that
 
 5 labor unions, cooperative organizations other than limited-equity
 
 6 housing cooperatives, and organizations subject to any of the
 
 7 provisions of the insurance laws of this State, other than: [a]
 
 8      (1)  A pure captive insurance company with a nonprofit
 
 9           parent company[,];
 
10      (2)  A mutual benefit society; or [the]
 
11      (3)  The Hawaii employers' mutual insurance company
 
12           established by section 431:14A-103,
 
13 shall not be organized under this chapter."
 
14      SECTION 2.  Section 432:1-201, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "432:1-201  Incorporation [by charter].  Any mutual benefit
 
17 society may be or become incorporated [by charter] as provided in
 
18 [sections 416-19 and 416-20,] chapter 415B, notwithstanding any
 
19 limitations under the corporation law as to the purposes for
 

 
Page 2                                                     13
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 which [charters may be granted.] corporations may be
 
 2 incorporated.  Any society so [chartered as a corporation]
 
 3 incorporated shall be subject in all respects to this article."
 
 4      SECTION 3.  Section 432:2-102, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (b) to read as follows:
 
 6      "(b)  Nothing in this article shall exempt fraternal benefit
 
 7 societies from the provisions and requirements of [sections
 
 8 416-19 and 416-20.] chapter 415B."
 
 9      SECTION 4.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect upon its approval.