STAND. COM. REP. NO. 3284

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2484
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2484 entitled: 

     "A BILL FOR AN ACT RELATING TO THE CORPORATIONS,"

begs leave to report as follows:

     The purpose of this measure is to facilitate the
incorporation of businesses in the State.

     The Commissioner of Securities, Business Law Section of the
Hawaii State Bar Association, American Friends Service Committee,
and two law firms submitted testimony on the measure.

     The Hawaii Business Corporation Act was modeled after the
1969 version of the Model Business Corporation Act.  This measure
updates the Act by incorporating the 1984 amendments to the Model
Act.  The adoption of these amendments will make Hawaii's
corporation laws more consistent with the laws of other states
and modern business practices, and facilitate the formation of
new businesses in the State.

     Your Committee has amended this measure by:

     (1)  Renumbering the provisions to conform to the
          methodology used in the Hawaii Revised Statutes (HRS).
          To assist users of the new chapter in finding a
          counterpart Model Act provision, a new section 3 has
          been added to the measure to require the revisor of
          statutes to place a derivation table preceding the new

 
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                                   STAND. COM. REP. NO. 3284
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          chapter indicating the HRS section number and the Model
          Act number.  This will be similar to the derivation
          table in the front of chapter 415B, HRS, the Model
          Nonprofit Corporations Act;

     (2)  Replacing the use of the word "Director" to mean the
          director of commerce and consumer affairs with the
          words "department director" to clearly differentiate
          between the director of commerce and consumer affairs
          and the directors of corporations;

     (3)  Adding Model Act language that was inadvertently left
          out of the measure; 

     (4)  Making numerous changes to reflect appropriate drafting
          style and for clarity; and

     (5)  Inserting a defective effective date to facilitate
          further discussion.

     Your Committee finds that the changes made by your Committee
do not affect the substance of the Model Act submitted in this
measure.

     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. 2484, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2484, S.D. 1, and be placed on the calendar for Third
Reading.

                                   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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