STAND. COM. REP. NO. 969

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1079
                                        H.D. 3
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1079, H.D. 3, entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONVERSION OF BUSINESS
     ENTITIES,"

begs leave to report as follows:

     The purpose of this measure is to establish a standard
procedure under which corporations, partnerships, limited
liability partnerships, and limited liability companies may
convert to any other form of business entity authorized under
State law. 

     The Department of Commerce and Consumer Affairs presented
testimony in support of the measure.  The Business Law Section of
the Hawaii State Bar Association, though not present at the
hearing, submitted written testimony in support of the measure. 

     Your Committee finds that, currently, a business entity
wishing to convert into another form of a business entity is
required to dissolve the business and form a new entity.  This is
often a time consuming and costly process. 

     This measure simplifies and expedites the conversion process
by establishing a standard procedure common to all forms of
business entities.  By simplifying the conversion process, the
State will provide greater flexibility for growing businesses

 
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                                   STAND. COM. REP. NO. 969
                                   Page 2


operating in Hawaii and encourage new business development in the
State.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1079, H.D. 3, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1079, H.D. 3, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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