Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1139
                                     S.D. 1
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred S.B. No.
1139, S.D. 1, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Amend the Hawaii Limited Liability Company Act of
          Chapter 428, Hawaii Revised Statutes, to conform with
          amendments made to the Uniform Limited Liability
          Company Act adopted by the National Conference of
          Commissioners on Uniform State Laws several years ago;

     (2)  Repeal prohibitions against limited liability companies
          (LLCs) engaging in insurance company and financial
          institution activities as well as those of other
          professions and vocations, without affecting other
          statutory requirements regarding those activities;

     (3)  Extend the time within which an administratively
          terminated LLC may apply to the Director of Commerce
          and Consumer Affairs for reinstatement;

     (4)  Allow a one-step amendment and restatement of an LLC's
          articles of organization; and

                                 STAND. COM. REP. NO. 1779
                                 Page 2

     (5)  Repeal provisions requiring that case law be applied
          when a party seeks to hold members of an LLC personally
          liable, a housekeeping measure that is not intended to
          affect underlying individual rights to "pierce the
          corporate veil".

     The Business Registration Division of the Department of
Commerce and Consumer Affairs testified in support of this bill.
Hawaii Island Landscape Association commented on this bill.

     Your Committee has made technical, nonsubstantive changes
for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1139, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1139,
S.D. 1, H.D. 2.

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

                                   DWIGHT Y. TAKAMINE, Chair