CONFERENCE COMMITTEE REP. NO. 18
Honolulu, Hawaii
, 2009
RE: H.B. No. 618
S.D. 2
C.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Sir and Madam:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 618, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this bill is to enact the Uniform Prudent Management of Institutional Funds Act to conform the law governing the spending of charitable endowment funds with modern investment and expenditure practices.
Your Committee on Conference finds that Hawaii law prohibits charities from expending endowment funds that fall below the principal of the endowment (historic dollar value). However, under current economic conditions, many endowments may be below their historic dollar value, preventing charities from funding their various programs.
Under this bill, allowable endowment fund expenditures are based upon the value of the fund's entire portfolio, rather than its historic dollar value. This improves the ability of charities to address fluctuations in the value of the endowment.
This bill also streamlines the process for releasing restrictions on the management, investment, or purpose of endowment funds that do not exceed certain value thresholds. Charities will be able to release these restrictions without court approval if the value of the fund is below $250,000 and after obtaining the Attorney General's consent. For funds with a value of less than $50,000, the charity may release restrictions without court approval after providing notice to the Attorney General.
Your Committee on Conference has amended this bill by:
(1) Specifying that this bill applies to charitable funds existing on or established after July 1, 2009, the effective date of this bill; and
(2) Making technical, nonsubstantive amendments for clarity and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 618, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 618, S.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
ON THE PART OF THE SENATE |
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ON THE PART OF THE HOUSE |
____________________________ ROSALYN H. BAKER, Chair |
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____________________________ ROBERT N. HERKES, Co-Chair |
____________________________ BRIAN T. TANIGUCHI, Co-Chair |
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____________________________ JON RIKI KARAMATSU, Co-Chair |
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____________________________ GILBERT KEITH-AGARAN, Co-Chair |
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